0222 GMT - More upside for JGB yields and the yen looks likely, Capital Economics' John Higgins says in a commentary. Japanese inflation and PMI data released Friday bolster Capital Economics' view that the JGB 10-year yield will continue to rise, the chief markets economist says. The ongoing rise in JGB yields probably stems from investors' reassessment of the Bank of Japan's monetary-policy outlook, Higgins says. The BOJ's policy rate is likely to reach 1.25% by end-2026, which feeds into Capital Economics' forecast for JGB 10-year yield to end 2025 at 1.75%. This could also buoy the yen against the dollar, says Capital Economics, which forecasts USD/JPY to reach 145 by end-2025. USD/JPY is 0.1% higher at 149.46. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
February 23, 2025 21:22 ET (02:22 GMT)
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