0511 GMT - Longer-dated Japanese government bond yields aren't expected to climb further, Capital Economics' John Higgins says in a note. The chief economic adviser for financial markets sees the 10-year JGB yield ending this year and next at 3.0%. That is around current levels, after the latest JGB selloff sent the 10-year yield decisively above 3% for the first time in three decades. He notes that mid-2027 expectations for the BOJ policy rate, as implied by the OIS market, roughly align with CE's 2% forecast. Beyond that, "we don't expect the rate to continue to rise by as much as investors appear to expect," Higgins writes. CE views the neutral level at or around 2%, while OIS-implied rates in the distant future now exceed 4%.
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