Morgan Asset Management: The Central Bank of Japan may accelerate the rate increase by recommending a reduction in or avoidance of Japanese national debt

On 4 August, Morgan Asset Management indicated that a reduction or avoidance of national debt on a day-to-day basis could increase the excess return over the global bond benchmark index. The chief of operations, Myles Bradshaw, stated that the Bank of Japan was still too slow in its policy normalization and interest rate hikes, which meant that Japanese yen intervention alone was unlikely to change its fundamentals or substantially slow down its devaluation. In his view, the possible acceleration of interest rate hikes by the Central Bank of Japan was a clear opportunity for investors, and the current market digestion of interest rates every six months seemed to be a low threshold。