JGB Yields Near Peak

Citi strategist says Japanese government bonds are becoming appealing as yields near peaks.

Citi Inc. strategist Tomohisa Fujiki has stated that Japanese government bond yields are near their peaks and expects financial institutions to increase their investments once the fiscal policy outlook becomes clearer. Fujiki noted that Japan's potential growth rate has not changed significantly and that 2.5%–3.0% would be fair value for the benchmark 10-year if inflation stabilizes at around 2%.

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