JGB Market Compass

Historically appropriate levels for key JGB yields based on 10-year yield

• We have revised down our forecast range for 10-year JGB yield to 0.60% - 1.20% from 0.75% - 1.30% given potential aftermath of sharp recent decline

• We also lowered our projections for other key JGB yields in view of their historically appropriate levels relative to 10-year yield

• However, we lifted our 20-year forecasts by 10bp and lowered our 30-year projections by 10bp to reflect divergent demand outlook