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Market Focus

Japan: Market Is Underpricing The BoJ’s Hiking Path

by Felix-Antoine Vezina-Poirier, Chief Strategist  

Stay underweight JGBs crosses as sticky inflation and improving growth momentum point to a higher terminal rate than markets expect. Japanese 2-year JGB yields have breached 1%, the highest since June 2008. BoJ Governor Ueda has signaled a likely rate hike at…

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