Morgan Stanley expects the 10-year Japanese bond yield to drop to 2.1% by 2026

According to the Morgan Stanley report, the yield of Japanese 10-year treasury bond bonds is expected to decline to 2.1% by the fourth quarter of 2026, currently 2.74%. Strategists say that the performance in the middle of the yield curve will be better than other maturities, while the long end will lag behind due to insufficient demand from domestic investors. The report predicts that the yield will rebound to 2.3% in the fourth quarter of 2027.