RBC BlueBay Asset Management jettisoned its long-standing bet against Japanese bonds, wagering they are poised to gain as the nation’s central bank holds back on further interest-rate hikes.
The firm has shifted to an overweight position in 30-year bonds over the past week as the U.S. trade war darkens the economic outlook, abandoning its bet that they had further to fall. The move came as the yield surged, pushing it to a more than two-decade high earlier this week.
"We have thought that over time, Japanese cash interest rates go up over time,” Mark Dowding chief investment officer at BlueBay, said in an interview. "However, with growth slowing due to tariffs, we think that the BOJ may not be in a hurry to hike rates in the next few months.”
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