An Azimut Group fund manager said that although Japanese government bonds are considered high-risk assets, they still provide investors with one of the best investment opportunities in the global fixed income market. Nicolo Bocchin believes that the Bank of Japan will not take aggressive measures to raise interest rates. The head of the global fixed income business at this $180 billion asset management company said traders have overestimated Japan's inflation prospects. “I am a buyer and am very optimistic about long-term Japanese treasury bonds,” Bocchin said in an interview on Monday. “The long end of the yield curve is very attractive.” His views run counter to one of the most popular trading logics in the current market. Investors have pushed Japan's long-term treasury bond yields to a decades-high level because they expect continued inflation, widening fiscal deficits, and the central bank's gradual withdrawal from the bond market to drive up borrowing costs.

An Azimut Group fund manager said that although Japanese government bonds are considered high-risk assets, they still provide investors with one of the best investment opportunities in the global fixed income market. Nicolo Bocchin believes that the Bank of Japan will not take aggressive measures to raise interest rates. The head of the global fixed income business at this $180 billion asset management company said traders have overestimated Japan's inflation prospects. “I am a buyer and am very optimistic about long-term Japanese treasury bonds,” Bocchin said in an interview on Monday. “The long end of the yield curve is very attractive.” His views run counter to one of the most popular trading logics in the current market. Investors have pushed Japan's long-term treasury bond yields to a decades-high level because they expect continued inflation, widening fiscal deficits, and the central bank's gradual withdrawal from the bond market to drive up borrowing costs.