BCA Insights

Tactical Trades | Global Fixed Income | BCA Research

Written by BCA Insights | Nov 13, 2023 4:19:00 PM
This trade mirrors our two highest conviction strategic views in government bond space, overweighting core European government debt and underweighting Japanese government bonds (JGBs). This is a pure monetary policy convergence trade. The European Central Bank (ECB) is done with its rate hiking cycle and the Bank of Japan (BoJ) has already slowly entered a monetary tightening phase as Yield Curve Control (YCC) limits on JGB yields have eased.