Government bond market is out of favour in Japan

The Japanese government bond market continues to offer little in the way of reward for the overseas ...

The Japanese government bond market continues to offer little in the way of reward for the overseas investors. Royal & SunAlliance Investment Management expects yields on 10 year bonds to rise from 1.7% to 2.5% by the end of the year on the back of a strengthening of the domestic economy. The group anticipates economic growth will hit around 1.5% this year, reaching around 2% during 2001. It forecasts the yield on five-year Japanese government bonds will go up to 1.8% from 1.1% and also forecasts that yields on 20-year Japanese government debt will rise to 2.7% from 2.16% by the end of ...