Japan’s bond market is back in play after decades in the wilderness

Japanese government bonds (JGBs) are selling off as policy normalization progresses and investors worry about Tokyo’s spending plans. While the move reflects rising rate concerns, experts argue JGBs merit a fresh look, suggesting the current selloff may be overdone or at least not fully justified by fundamentals.

Analysis

Japanese government bonds (JGBs) are selling off as policy normalization progresses and investors worry about Tokyo’s spending plans. While the move reflects rising rate concerns, experts argue JGBs merit a fresh look, suggesting the current selloff may be overdone or at least not fully justified by fundamentals.