MUFG wades back into Japanese bonds with eye on policy risks

What happened: MUFG Bank is gradually rebuilding its position in Japanese government bonds, according to Atsushi Yamashita, chief executive of its global markets business. Key numbers: Yamashita expects 10-year JGB yields to peak at about 3.2%, just above the three-decade high of 3.115% reached earlier this month. Why it matters: Yamashita said risks of a further yield rise are not fully eliminated, citing possible Bank of Japan struggles with inflation or doubts over Prime Minister Sanae Takaichi's grip on government finances.

MUFG Bank is gradually rebuilding its position in Japanese government bonds, according to Atsushi Yamashita, chief executive of its global markets business.

Yamashita said risks of a further yield rise are not fully eliminated, citing possible Bank of Japan struggles with inflation or doubts over Prime Minister Sanae Takaichi's grip on government finances.