Where are the global yield hotspots?

The Bank of Japan appears to be sticking to its central bank stance for now. What does that mean for yields?

Mr Trindade notes: “We expect the Bank of Japan to stick with its ‘yield curve control’ framework in 2017 but the 0 per cent target might be adapted with a ‘tolerance range’, as rising treasury yields could make it more difficult to sustain this target i.e. we could see Japanese yields go slightly higher.”

In the search for yield, therefore, investors should be able to pinpoint some hotspots but they will need to be vigilant of monetary policy and the type of environment in which central banks may have to change course.

eleanor.duncan@ft.com