Pimco may eye long-term JGBs if yields hit 3%, Japan co-head says

Key facts

• Pimco may consider investing in long-term JGBs.
• The condition for investment is JGB yields hitting 3%.
• Pimco's Japan co-head made the statement.
• The firm views the current JGB market as 'dislocated'.
• 30-year JGB yields are projected to hit 3% in May 2025.

Pimco, a major investment firm, is contemplating an investment in long-term Japanese government bonds (JGBs) should their yields reach the 3% threshold. The firm's Japan co-head indicated that this potential move would occur if 30-year JGB yields surpass 3% in May 2025. Pimco currently describes the Japanese bond market as 'dislocated,' suggesting a significant opportunity or imbalance. This perspective indicates a potential shift in the firm's strategy regarding Japanese sovereign debt. The firm's assessment points to a notable change in the Japanese bond market dynamics that could attract substantial investment if specific yield targets are met.