Greater volatility in bond markets expected for Japan

Quentin Fitzsimmons, manager of Threadneedle’s Absolute Return Bond fund, said: “The BoJ has announced that it will start to remove accommodation from the monetary system in the next few months,” says Fitzsimmons. “This poses downside risk for bond markets. However, we need to remember that inflation remains low globally and this will continue to underpin bond prices.” Fitzsimmons said the BoJ’s statement of intent could have ramifications for overseas markets too. He added: “In the long term, the narrowing of interest rate differentials between Japan and the rest of the world would make ...