Macquarie Strategist Highlights Structural Buyer Shortage in Japanese Bonds

Macquarie Group strategist Gareth Berry has highlighted a structural shortage of buyers for Japanese government bonds. According to Jin10, life insurance companies have been selling, and the Bank of Japan remains a net seller. As the Strait of Hormuz remains closed, global concerns are mounting over a potential critical point. This situation could lead to a significant surge in oil prices, resulting in either a massive inflation outbreak or a spike in fiscal spending to mitigate the impact, or possibly both. Japan has effectively capped domestic gasoline prices, reducing inflation risk but increasing fiscal risk.