Bonds Most Expensive Since Lehman Versus Stocks: Japan Credit
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Japanese bonds are the most expensive relative to local shares since the collapse of Lehman Brothers Holdings Inc. amid growing doubts that companies’ earnings will meet analysts’ forecasts.
The Nikkei 225 Stock Average’s earnings yield, or estimated net income per share divided by the stock price, was 6.03 percentage points more than Japan’s 10-year bond yield on Aug. 22, the most since October 2008, according to Bloomberg data. The similar spread in the U.S. reached 6.82 percentage points on Aug. 19, a level unseen since December 2008.