0145 GMT - Japan's overnight index swap curve may keep bear-flattening in short term, due to a rise in near-term BOJ policy rate expectations and declines in U.S. Treasury yields, three Japan-based strategists at Morgan Stanley MUFG Securities say in a report. The Bank of Japan's terminal rate will probably continue to be upwardly repriced, owing to factors such as BOJ officials' comments for a potentially higher neutral rate above 1.0%, they say. The brokerage's U.S. rates strategists maintain their view for Treasury yields to fall through September 2026, though the Fed has been signaling somewhat of a reluctance to keep cutting rates amid concerns over tariff-induced inflation, they add. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

February 16, 2025 20:45 ET (01:45 GMT)

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