More pressure on bonds

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Mrs Watanabe’s Threat To World Bond Markets

 

We argue here that Japan’s shifting YCC policy is far from the greatest threat to global bond markets from Asia. A bigger issue is the stability of Japan’s huge household savings pool. Currently invested in low yielding deposits, it is anchoring low World interest rates. However, faster Japanese inflation and/ or a rapid economic rebound across the Asian economies, could lead to a significant asset shift away from global bonds.

 

 

 

 

See our latest published research, Global View: Mrs Watanabe’s Threat To World Bond Markets - 16th November 2023

 

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