MUFG wades back into Japanese bonds with eye on policy risks

Japan’s biggest bank is tentatively getting back into the country’s benchmark government bonds, even as it remains concerned that yields could further spike due to fiscal and monetary policies in the nation. Yamashita expects Japan’s 10-year government bond yields to peak at about 3.2%, just above the three-decade high of 3.115% reached earlier this month. But Yamashita remains wary that yields could climb higher if the Bank of Japan struggles to contain inflation or Prime Minister Sanae Takaichi fails to convince investors that she can maintain a grip on government finances.