Dongfang Huali believes that the valuation of Japanese bond duration is attractive and expects the Bank of Japan to raise interest rates in October

In its mid year outlook, the Oriental Huali Investment Research Institute pointed out that the valuation of Japanese bond duration is attractive, but expansionary fiscal policies have deterred investors. Dongfang Huili believes that if the Bank of Japan adopts a more hawkish stance, inflation expectations will improve and trigger a market rebound. Dongfang Huili believes that easing inflation in Japan is unlikely to convince investors that the Bank of Japan has overcome its lagging situation. Orient Bank predicts that the Bank of Japan will raise interest rates again in October to curb the weak trend of the yen.