Japanese Bonds Set to Lose Mantle of Lowest Yielding Major Market to China

Japanese investors expect the nation’s benchmark 10-year government bond yield to climb as high as 2% this year in a move that looks likely to relegate China’s sovereign debt to the lowest yielding of major markets.

That would be a startling turnaround for Japan’s once moribund market — which for years was synonymous with negative rates — and another sign of the challenge China faces with low inflation.