TOKYO, Sept 16 (Reuters) - Pacific Investment Management Co (PIMCO) is neutral on Japanese government bonds (JGBs) in its global portfolio as Japanese interest rates are no longer exceptionally low compared with other countries, the head of its Japan unit said on Wednesday.
“The Bank of Japan is allowing market forces to play a bigger part in super-long bond yield moves, a trend that will likely continue. If so, we can be somewhat under-weight on super-long JGBs because the yield curve could steepen ahead,” Tomoya Masanao, head of PIMCO Japan, told Reuters.
PIMCO, one of the world’s largest investment firms, managed 12.84 trillion yen ($121.97 billion) in assets for Japanese clients as of June 2020. ($1 = 105.2700 yen) (Reporting by Leika Kihara and Takahiko Wada; Editing by Muralikumar Anantharaman)
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