Government bond market is out of favour in Japan

The Japanese government bond market continues to offer little in the way of reward for the overseas investors. Royal & SunAlliance Investment Management expects yields on 10 year bonds to rise from 1.7% to 2.5% by the end of the year on the back of a strengthening of the domestic economy. The group anticipates economic growth will hit around 1.5% this year, reaching around 2% during 2001. It forecasts the yield on five-year Japanese government bonds will go up to 1.8% from 1.1% and also forecasts that yields on 20-year Japanese government debt will rise to 2.7% from 2.16% by the end of ...