Treasury Yields at 1% Fail to Excite Japanese Bond Investors
- 10-year Treasury attractive at 1.3%: AllianceBernstein Japan
- Australian bonds remain appealing for Japanese investors
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Japanese money managers are biding their time on Treasuries, waiting for the 10-year yield to advance further after it breached the key 1% threshold this week.
“Japanese investors will likely be prompted to buy more Treasuries when the yield rises to 1.3%,” according to Masahiko Loo, fixed-income portfolio manager at AllianceBernstein Japan. “Funds may be tip-toeing back after 10-year U.S. yields rose above 1%, but they expect more fiscal measures” to push yields higher.