Pacific Investment Management is seeing an opportunity in Japan¡¯s 30-year sovereign bonds at a time when concerns over inflation and government spending have pushed those yields to record highs.
Marc Seidner, chief investment officer of nontraditional strategies, said Japan¡¯s yield curve has become ¡°too steep¡± relative to other developed markets, creating attractive value in longer-dated debt. The firm has bullish positions on 30-year bonds while taking bearish bets on the 10-year note on expectation that the gap between the two will narrow.
¡°There is an excess risk premia that is attractive on an absolute basis and relative to many, many other markets,¡± Seidner said in an interview in Singapore.
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