Hidehiko Maejima Yields Quotations

We see a possible rally this month as investors take advantage of yields at these levels. We may test the 4.5 percent level again this month.

At this juncture, it would be difficult to attract strong demand, especially for 30-year maturity. It will trigger higher yields in 10-year securities.

Employment growth will keep the economy going and the bond market will be susceptible to the strength of the data that will push the Fed to hike rates again. We expect yields to rise.

The inflation data we will see this week and next will support the view the Fed can keep on hiking at the next two meetings. Yields will rise led by the shorter-maturity debt.