Rakuten Bank to Refrain From JGB Buying as More Rate Hikes Seen

Rakuten Bank Ltd., a major Japanese financial institution, has announced that it will refrain from actively purchasing Japanese government bonds (JGBs) until the Bank of Japan (BOJ) implements further interest rate hikes. This decision reflects the uncertainty surrounding the central bank's policy outlook, which is impacting investor sentiment. The article suggests that Rakuten Bank's move is a sign of the broader market's cautious approach towards JGB investments, as market participants anticipate additional rate increases by the BOJ. This stance by a prominent financial player underscores the ongoing challenges faced by the Japanese bond market, as investors navigate the evolving policy environment. The article highlights the growing influence of monetary policy decisions on investment strategies, particularly in the JGB market, where the BOJ's actions are closely watched and can significantly shape market dynamics.