Zero Yields Won't Cut It for Japan Brokers Favoring Longer Bonds
- Medium, long-term bonds are good investments: MUFJ Morgan
- MOF seen cutting two-, five-year debt sales by 100 billion yen
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The message to Japan’s government from brokerages is clear: go easy on the zero-percent debt.
At last week’s meetings with the Ministry of Finance, most primary dealers and investors didn’t object to cutting issuance of medium-term debt in the year starting April 1, with the five-year yields now 0.035 percent. There was appetite for more-frequent sales of 40-year notes that yield 1.53 percent. Demand at last week’s auction of 20-year bonds was the strongest in a year.