Amundi: Japanese Bond Duration Seen as 'Very Attractive'

On June 30, Amundi Investment Institute noted in its mid-year outlook that the valuation of Japanese bond duration is becoming 'very attractive,' but expansionary fiscal policy continues to deter investors. The institution stated that if the Bank of Japan adopts a more hawkish stance, it could improve inflation expectations and trigger a market rebound. Although inflation in Japan has eased significantly thanks to policy measures, Amundi believes this is unlikely to convince investors that the BOJ has escaped its 'behind the curve' situation. The institution expects the BOJ to raise interest rates again in October to curb the weakening yen.