Kuroda Adds to Half-Trillion-Dollar January Global Bond Windfall
- BOJ adopts negative rates in surprise move to spur lending
- Sovereign yields decline in U.S., Japan, Germany, U.K., France
Weighing the Impact of the Bank of Japan's Move
The Bank of Japan’s surprise decision to adopt a negative interest-rate strategy boosted a global bond-market rally that had already handed investors $567 billion this month as they fled risky assets amid a collapse in equities and commodities.
Yields on benchmark U.S. 10-year notes dropped to the lowest since April on a closing basis with Treasuries posting their best month in a year. Japanese yields fell to record lows after BOJ Governor Haruhiko Kuroda’s board voted 5-4 to put an interest rate of minus 0.1 percent on current accounts held at the central bank, just days after saying it wasn’t considering such a move. German, Belgian and French note yields also touched all-time lows, while U.K. bonds gained.