Abenomics Charm Fades as Yields Signal Headwinds
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Japan’s bond investors are mirroring voters in turning away from Prime Minister Shinzo Abe.
The nation’s implied forward yield, an indicator of traders’ expectations for the 10-year note rate in 2016, fell to 0.83 percent on July 29. That’s the lowest since the Bank of Japan announced record stimulus in April 2013, suggesting reduced bets that an improving economy will depress demand for the safety of sovereign debt.