Mizuho Financial Group expects the Bank of Japan to pick up the pace of interest-rate hikes, with the next one coming as soon as next month, as the weak yen and inflation prompt the central bank to act more quickly.
Kenya Koshimizu, co-head of the global markets division that manages the bank¡¯s ?41 trillion ($257 billion) securities portfolio, also anticipates longer-term rates to keep rising after 10-year Japanese government bond (JGB) yields hit a 30-year high this week.
The upshot for Â鶹´«Ã½ third-largest lender is that it will still avoid buying the nation¡¯s bonds apart from inflation-linked notes and those that mature within a year, said Koshimizu. ¡°We¡¯ve limited the amount of interest-rate risk we take, and so our portfolio¡¯s duration is very short,¡± he said in an interview in Tokyo.
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