End of QQE and US rate decline will rein in Japanese yields – study
Japan’s institutional investors likely to stay in foreign bond markets, researchers say
The end of quantitative and qualitative easing (QQE) in Japan and rate cuts by the US Federal Reserve will contain the rise of long-term Japanese sovereign bond yields, according to research from the Banque de France.
The authors – Xavier Denis, Tamaki Descombes and Henri de la Guéronnière – point out that although Japan’s central bank has signalled an end to QQE in either 2025 or 2026, it has yet to discuss reducing its balance sheet.
They say that as interest rates outside the country fall and
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