The yield on the benchmark Japan 10-year JGB rebounded to 0.16%, as investors grew increasingly concerned about soaring energy prices leaking into current inflationary pressures. Crude oil futures traded around levels not seen since 2008 and gasoline prices briefly hit all-time highs at the beginning of this week. In addition, Russia’s deputy Prime Minister warned that the oil barrel could reach $300 if his country’s oil exports are banned. On the data front, real wages in Japan rose for the first time in five months, mostly due to changes in the calculation of inflation. source: Ministry of Finance, Japan
Historically, the Japan Government Bond 10Y reached an all time high of 7.59 in June of 1984. Japan Government Bond 10Y – data, forecasts, historical chart – was last updated on March of 2022.
The Japan Government Bond 10Y is expected to trade at 0.15 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.20 in 12 months time.
