PIMCO's Charting Perspectives | Japan's 30-year JGBs

"The JGB 10-year, 20-year-forward rate tells a compelling story: A 373-basis-point climb since 2021 marks a structural shift in Japan’s bond market."

"Long-term buyers – insurers and pensions – have stepped back from their role as steady buyers in the super-long sector. In their place, short-term traders dominate, turning 30-year JGBs into tactical plays. The result? Heightened volatility, amplified by global rate moves and costly currency hedges."

"Absorption may hinge on short-covering – technical resilience, not fundamental strength."

hashtag#ChartingPerspectives