BofA Global Research: Time to Buy the Dip in Medium-Term Japanese Government Bonds

Three members of BofA Global Research stated in a report that it is time to buy medium-term Japanese government bonds amid the price decline. Bond market participants clearly believe that the Bank of Japan’s next rate hike may not come until as early as October 2025. Bank of Japan Governor Kazuo Ueda continues to emphasize the high level of uncertainty surrounding the Trump administration’s tariff policies. In addition, no agreement was reached at the Japan-U.S. summit. As a result, it may take some time for the market to begin pricing in the Bank of Japan’s next rate hike.