BlackRock Investment Institute suggests underweighting Japanese government bonds, expects Bank of Japan to raise rates further

It stated that the prospects of further rate hikes by the Bank of Japan, rising global term premiums, and a large amount of bond issuance may push Japanese government bond yields even higher. The BlackRock Investment Institute holds a neutral view on the Japanese stock market and notes that Japan's dependence on imported energy may offset the positive effects of healthy corporate balance sheets and corporate governance reforms.