Institution: Japan brings a significant structural transformation to the global bond market.

Nuveen's Laura Cooper stated in a report that Japan has brought the most significant structural shift to the global bond market. "As the Bank of Japan gradually normalizes its policies, the biggest suppressor of global term premium is slowly fading," said the global investment strategist and head of macro credit bonds. She said that although domestic investors are starting to re-engage with Japanese government bond yields at multi-decade highs, this process is expected to be gradual and dependent on domestic confidence. "Once a clear signal is given that the tightening cycle is ending and fiscal prospects become more clear, local investors may return, and this is the catalyst we are watching for," Cooper said. "Before that, trend-neutral trading is more about carry and riding returns rather than directional bets."