It is possible that this year will mark the end of the deflation and will bring in a paradigm shift to the bond market next year. Ten-year yields may rise to 2 percent by the end of March next year.
US yields have continued to rise in anticipation of tightening beyond normalization, and we should also prepare for a paradigm shift in Japan as well.
As the data show, the gap between domestic supply and demand is clearly narrowing, which should create the environment for prices to rise stably.
Inflation concerns are going to push up bond yields. Ten-year yields will rise to 2 percent in the first quarter.
We expect the core nationwide CPI to rise 0.4 pct year-on-year, for a fourth straight month of non-negative growth.