Sony Financial Group economist Takayuki Miyajima said nominal GDP growth in Japan is roughly 3%, a relatively robust pace that could support the 10-year JGB yield moving above 3%. He expects the benchmark 10-year JGB yield to trade around 3% in the near term, but said any breach of 3% is unlikely to be sustained because the economy is expected to slow later this year. Miyajima added that market pricing for an imminent Bank of Japan rate hike is reducing concerns the BOJ is behind on inflation, w

Sony Financial Group economist Takayuki Miyajima said nominal GDP growth in Japan is roughly 3%, a relatively robust pace that could support the 10-year JGB yield moving above 3%. He expects the benchmark 10-year JGB yield to trade around 3% in the near term, but said any breach of 3% is unlikely to be sustained because the economy is expected to slow later this year. Miyajima added that market pricing for an imminent Bank of Japan rate hike is reducing concerns the BOJ is behind on inflation, which should help cap longer-term yields.