Japan's Mizuho holds off on JGBs given potential end to negative rates -senior executive

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Japan's Mizuho holds off on JGBs given potential end to negative rates -senior executive
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By Makiko Yamazaki and Ritsuko Shimizu TOKYO (Reuters) - Japan's Mizuho Financial Group is holding off on buying government bonds as a sustained ...

Jake the Eastern Passage Rock Snake | SaltWireTOKYO - Japan's Mizuho Financial Group is holding off on buying government bonds as a sustained economic recovery may prompt the central bank to exit its negative interest rate policy early next year, a senior executive said.

His comments underscore how Mizuho and other top Japanese banks are now reckoning with a looming inflection point as Japan's economy approaches policy normalisation after years of little growth, weak consumer spending and massive central bank easing. That has raised the once-unthinkable prospect of higher borrowing costs, portending a massive change for banks after decades of rock-bottom rates.

"Given that we are awash with deposits, of course we very much want to invest," he said."But as current economic fundamentals could push bond yields up further, this may be the time to wait. There are times when we need to be patient."

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