One of Asia’s top-performing bond funds says the yen is the “prime vehicle” investors should target as the final anchor lifts in the world of rock-bottom interest rates.
“When you talk about pivots, that’s the mother of all pivots” when the Bank of Japan decides to tweak monetary policy, said Omar Slim, wealth manager at PineBridge Investments. “Obviously the way the market will react to this will be a potential appreciation of the yen.”
The yen is up more than 11% from its October low amid government intervention, hopes of a slowdown in US interest rate hikes and speculation about the possibility of a BOJ postponement sometime next year. The risks of such a pivot compounded on Wednesday after a report in which officials weighed the possibility of a political review in 2023 – a precursor to policy changes in the past.
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