Updated
Updated · Bloomberg · Aug 18
Mizuho Sees BOJ Raising Rates Next Month as 10-Year JGB Yields Hit 30-Year High
Updated
Updated · Bloomberg · Aug 18

Mizuho Sees BOJ Raising Rates Next Month as 10-Year JGB Yields Hit 30-Year High

3 articles · Updated · Bloomberg · Aug 18

Summary

  • Next month could bring the BOJ’s next rate hike, Mizuho said, adding that the central bank may raise rates more frequently than previously expected.
  • Weak yen pressure and persistent inflation are driving that view, with Mizuho arguing the BOJ may need to act faster.
  • 10-year Japanese government bond yields hit a 30-year high this week, and Mizuho’s Kenya Koshimizu expects longer-term rates to keep climbing.
  • Mizuho’s call comes from the team overseeing a 541 trillion ($257 billion) securities portfolio, underscoring how major market players are bracing for tighter Japanese policy.

Insights

With inflation surging, how is Mizuho repositioning its $257 billion portfolio to profit from Japan's historic interest rate shift?
As Japan's 10-year yield nears a critical 30-year high, can the BOJ hike rates without crushing its debt-heavy economy?
Will the Bank of Japan's race to combat a weak yen trigger a global shockwave by unraveling massive carry trades?