Citi says 10-year JGB yield around 3% fits BOJ terminal cap
Citi Research strategist Tomohisa Fujiki says a 3% 10-year JGB yield is reasonable if Japan’s inflation settles near 2% and the BOJ terminal policy rate is capped at 2%.
If Japan's inflation settles near 2%, Citi Research strategist Tomohisa Fujiki said a 10-year Japanese government bond yield of 3% would be reasonable. He said yields could move higher depending on future rate hikes and crude price dynamics, but added that if the policy rate does not rise above 2…