Economics
JGB Bubble Seen Growing by Bank of America on BOJ: Japan Credit
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A bubble forming in the Japanese government bond market risks further expansion as central bank purchases shield the notes from a global rout, according to Bank of America Merrill Lynch and Mizuho Securities Co.
The Bloomberg Japan Sovereign Bond Index climbed 1.45 percent in the quarter ended Sept. 30, the biggest gain among Group of 10 countries after the 1.54 percent increase in Italy’s debt. Benchmark 10-year JGB yields were the lowest in the world at 0.655 percent today and compared with 2.64 percent for similar-maturity U.S. Treasuries.