Macquarie: Japanese Government Bonds Face Structural Buyer Shortage as Insurers Sell, BOJ Remains Net Seller

According to Macquarie strategist Gareth Berry, Japanese government bonds face a structural shortage of buyers, with insurance companies selling and the Bank of Japan remaining a net seller, as of May 18. Global risk sentiment has deteriorated amid concerns over the ongoing closure of the Strait of Hormuz and potential oil price spikes that could trigger either widespread inflation or increased fiscal spending to cushion economic impact.
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