Bank of Japan Gov. Haruhiko Kuroda has scope to increase unprecedented stimulus, limiting losses on Japanese government bonds in 2014 as global sovereigns slump, economists predict.
Ten-year JGB yields will rise to 0.87 percent by the end of 2014 — they reached a three-month high of 0.715 percent Monday — while the average for Group of Seven peers will climb 27 basis points next year to 3.205 percent, the median forecasts of analysts surveyed by Bloomberg News show.
Japan's benchmark bond would deliver a 0.7 percent loss to investors in that scenario and end 10 consecutive years of gains for the JGB market.
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