Japan’s 5-Year Yield Falls to Record as Easing Outweighs Moody’s
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Japan’s five-year yields touched a record low on speculation the Bank of Japan will maintain unprecedented stimulus to reach a 2 percent inflation target.
The nation’s government bonds completed an eight-month rally in November after two-year yields reached negative levels as the central bank pushed forward with plans to expand bond purchases to as much as 12 trillion yen ($101 billion) a month. A 10-year bond sale today met the lowest demand since July 2013 after Moody’s Investors Service cut Japan’s credit rating on doubts the government will achieve deficit-reduction goals.