Dovish BOJ board member Ayano Sato said she supports phased, multiple rate
increases, but 10-year JGB yields fell Wednesday, tracking a broader decline in
global bond yields. Sato was one of two board members who cast a dissenting vote
at the BOJ’s September rate increase. Meiji Yasuda portfolio manager Shuichi
Ohsaki said Sato has adjusted her stance as Japanese political leaders move away
from a reflation policy route. SMBC strategist Katsutoshi Inadome said market
interpretation is mixed: some see Sato as less dovish, others do not;
Theoretically BOJ hikes should lift 10-year yields, but if hikes reduce worries
that the BOJ is lagging on inflation, yields could instead fall.
