(Bloomberg) -- Investors should buy Japan's 10-year
government bonds, and avoid two-year notes, because economic
growth isn't strong enough to spur inflation, according to Morgan
Stanley Japan Securities Co.
Ten-year securities will rise as companies refrain from
raising wages, giving consumers less to spend and crimping
economic expansion, said Atsushi Ito, a fixed-income strategist at
Morgan Stanley in Tokyo. The yield on benchmark 10-year bonds may
fall to 1.8 percent by the end of September, from 1.89 percent now,
Ito said. That would narrow the premium over two-year notes to 70
basis points from close to 90 basis points.
Read more at Bloomberg Bonds News
government bonds, and avoid two-year notes, because economic
growth isn't strong enough to spur inflation, according to Morgan
Stanley Japan Securities Co.
Ten-year securities will rise as companies refrain from
raising wages, giving consumers less to spend and crimping
economic expansion, said Atsushi Ito, a fixed-income strategist at
Morgan Stanley in Tokyo. The yield on benchmark 10-year bonds may
fall to 1.8 percent by the end of September, from 1.89 percent now,
Ito said. That would narrow the premium over two-year notes to 70
basis points from close to 90 basis points.
Read more at Bloomberg Bonds News
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