Jin10 data reported on October 20th, Vanguard Asset Management is looking beyond the political turmoil in Japan, betting that if the Bank of Japan raises interest rates this year and flattens the country's bond yield curve, it could profit. Vanguard Group's International Interest Rate Head, Ales Courtney, is preparing for a rate hike at the Bank of Japan's December meeting, doubling his position by selling short-term bonds and buying longer-term bonds. This stance sharply contrasts with the general view among investors. Investors broadly believe that given the changes in the political situation, the Bank of Japan may remain unchanged for a longer period, and Japanese lawmakers may vote for the next Prime Minister on Tuesday. This uncertainty has depressed the short-term Japanese government bond yields, which are sensitive to expectations of the official rate, while longer bond yields remain high, leading to a steeper yield curve.
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