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BOJ likely to modify policy by September: U.K. hedge fund

As rate rises loom, BlueBay Asset exec says selling JGBs 'attractive'

The yen is trading at more than 20-year lows against the dollar as the divergence between the Bank of Japan, with its ultraloose policy, and a tightening U.S. Fed widens.   © Reuters

TOKYO -- The Bank of Japan is likely to alter its ultraloose policy between July and September as the weakening yen drives up prices and poses a political headache for the government, an executive with a U.K.-based hedge fund said in an interview with Nikkei.

Mark Dowding, chief investment officer of BlueBay Asset Management, which oversees more than $120 billion and is building a sell position on Japanese government bonds, predicts the BOJ may abandon its yield-curve control strategy by the end of the year, saying that if that happens, "selling JGBs is an attractive trade."

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