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Central Bank Focus

Japan: BoJ Tightening Path Still Underpriced

by Felix-Antoine Vezina-Poirier, Chief Strategist  

The BoJ’s tightening path remains steeper than markets price, leaving JGBs unattractive in bond portfolios. The Bank of Japan raised rates by 25 bps to 0.75%, a multi-decade high, and signaled that further hikes are likely. However, the indicated pace fell…

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