POSSIBLE TURNING POINT FOR THE NIKKEI 3/3

The Japanese bond market has seen a paradigm shift following the Bank of Japan's (BoJ) formal end to yield curve control. This has allowed the yield on the 10-year government bond (JGB) to become more volatile and reflect economic fundamentals, but the market remains largely unattractive for foreign investors. The yields on offer are still significantly lower than those in other major economies, and the prohibitive cost of currency hedging often results in a negative overall return.