10yr JGB yield upside prospects amid terminal rate overshoot speculation
Key points
-
10yr JGB yield sails past key 1.3% level amid speculation of BoJ terminal rate exceeding market expectations
-
We calculated future 10yr JGB yield using estimation model that incorporates policy rate expectations, UST yields, economic/price conditions, and stock effect
-
If market prices in terminal rate above 1.0%, 10yr JGB yield could top 1.5%
