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Buyer Community> Trade Intelligence> Financial Markets> INTERVIEW-JGB 10-yr yield may hit 2% in 2010-BTM UFJ official
Source: Reuters

INTERVIEW-JGB 10-yr yield may hit 2% in 2010-BTM UFJ official

Published: 12 Nov 2009 19:51:38 PST

TOKYO, Nov 13 - Japanese government bond yields may trend higher until the government presents a longer term fiscal policy commitment, and the 10-year JGB yield could rise to 2 percent in 2010, a senior Bank of Tokyo-Mitsubishi UFJ portfolio manager said on Friday.

"The question over the medium-term is how long do (investors) need to keep buying," said Kenichi Nakayama, deputy general manager for Bank of Tokyo-Mitsubishi UFJ's treasury and investment division, referring to rising JGB issuance.

"That uneasiness is now acting as pressure to push interest rates higher," Nakayama, told Reuters in an interview, adding that the benchmark 10-year JGB yield is likely to move in a range of 1.3 to 1.8 percent until the end of March 2010.

The 10-year JGB yield is likely to move between 1.2 and 2.0 percent in calendar 2010, he said, adding that the Bank of Japan was unlikely to raise interest rates until the end of 2012.

The Bank of Tokyo-Mitsubishi UFJ is the core lending unit of Mitsubishi UFJ Financial Group, Japan's biggest bank.

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