With yields of just 1% or 2% even at the long end of the curve and continuing concerns on oversupply...
With yields of just 1% or 2% even at the long end of the curve and continuing concerns on oversupply, fixed interest managers are bearish on Japanese government bonds (JGBs). Massive issuance from successive fiscally undisciplined Japanese governments has made Japan the largest single-country issuer in the global bond indices, with a weighting of around 30%. But few fund managers are willing to place so much of their portfolio in bonds with such limited upside potential. Stewart Cowley, a manager in Newton's global fixed interest team, has no JGBs in the Newton International ...
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