Mitsui Sumitomo: 10-Year Japanese Government Bond Yield May Rise to 3% by Year-End

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On July 6, Masahiro Ichikawa, a strategist at Mitsui Sumitomo DS Asset Management, stated that as the Japanese economy remains on a solid growth trajectory, the yield on 10-year Japanese government bonds could reach 3% by the end of the year. He also predicted that if the government's large-scale investment plan can encourage the private sector to increase capital expenditures, there will be further room for growth in the Japanese stock market. He added, 'In terms of fiscal policy, Prime Minister Sanna Takashima has expressed the intention to ensure market confidence, so the likelihood of it becoming undisciplined seems very low.' The latest yield on 10-year Japanese government bonds rose by 6 basis points to 2.830%.
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