FOR a generation, it seemed a sure thing to short Japanese government bonds (JGB). Betting on JGB yields to rise thoroughly deserves its nickname: the widowmaker. > The data – the labour market, business sentiment (as measured by the regular Tankan survey), and purchasing manager indexes – look strong. > Fiscal policy continues to unfurl in a way likely to push up JGB yields. “Heavy foreign exposure made sense in the past with very low JGB yields, a lagging equity market, and a weakening yen.

Source: The Star January 08, 2026 06:27 UTC