Strategist: Foreign investors may find it easier to buy Japanese bonds, and the yen could appreciate

ME News, May 18 (UTC+8): Ichihiro Sasaki, Research Director at Phillip Securities Japan, said that at current yield levels, foreign investors may find it easier to buy Japanese government bonds. He added that he would not be surprised if domestic investors sell foreign bonds and instead buy Japanese government bonds. He said, “From an exchange-rate perspective, foreign capital inflows into Japanese bond markets could lead to yen appreciation, which may put some pressure on the upward movement of the Japanese stock market.” An increase in long-term Japanese government bond yields suggests that policy interest rates may rise, which would be a negative factor for the stock market. If interest rates rise too quickly, it would have a significant negative impact on the stock market. Against the backdrop of rising oil prices fueling inflation concerns, this cautious sentiment is intensifying. (Source: Jin10)