[Fitch: Rising Japanese government bond yields may lead to more funds staying at home] September 9th, Fitch Ratings said in a report on Wednesday that rising Japanese government bond yields may prompt domestic institutional investors to keep more funds at home. The rating agency said it expects the Bank of Japan's policy rate to rise faster than market expectations in 2026 and 2027, which will support the yen exchange rate and increase the relative attractiveness of Japan's domestic bonds. "As Japan's inflation, monetary policy and economic growth prospects push up domestic real interest rates, higher local yields will reduce the willingness of domestic institutions to chase lower-yielding overseas assets," a team of Fitch analysts led by market research director Monsur Hussain said in the report.