Japan's 10-Year Yield Drops to Record on Flight to Haven Assets

Japanese Shares Drop Most Since September

Japan’s benchmark bond yield dropped to a record after the nation’s stocks tumbled, spurring a flight to haven assets.

The 10-year yield touched 0.190 percent, falling past the low of 0.195 percent set on Jan. 20, 2015. Japanese sovereign debt is advancing as the central bank buys about as many bonds as the government is selling to stimulate the economy and crude oil’s plunge to a 12-year low undermines expectations for inflation.

“There must have been quite a lot of people who had to rush to buy bonds, given the rapid change in the external factors including stock prices,” said Takafumi Yamawaki, the chief rates strategist in Tokyo at JPMorgan Chase & Co. “Oil prices have slumped more than expected and slides in Chinese stocks have fueled concerns, making investors nervous.”

The price of the benchmark 10-year bond rose 0.097 to 101.021 as of 1:39 p.m. in Tokyo from Wednesday, with a yield of 0.195 percent, according to Japan Bond Trading Co., the nation’s largest inter-dealer debt broker.

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