BUSINESS / Economy

Kuroda seen limiting '14 losses as JGB run ends

Staying the course: The Bank of Japan kept its unprecedented quantitative easing policy in place at the end of the year after the U.S. Federal Reserve's decision to taper its own bond purchases helped bring the yen to a five-year low against the dollar. | BLOOMBERG

By Shigeki Nozawa, Mariko Ishikawa and Kevin Buckland
Bloomberg

Dec 30, 2013

Bank of Japan Gov. Haruhiko Kuroda has scope to increase unprecedented stimulus, limiting losses on Japanese government bonds in 2014 as global sovereigns slump, economists predict.

Ten-year JGB yields will rise to 0.87 percent by the end of 2014 — they reached a three-month high of 0.715 percent Monday — while the average for Group of Seven peers will climb 27 basis points next year to 3.205 percent, the median forecasts of analysts surveyed by Bloomberg News show.

Japan's benchmark bond would deliver a 0.7 percent loss to investors in that scenario and end 10 consecutive years of gains for the JGB market.

Kuroda seen limiting '14 losses as JGB run ends

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