Japan's Yield Curve Faces Further Pounding Amid BOJ Aftershock

Japan’s sovereign bond yields slid to record lows across the curve amid the aftershock from the central bank’s unexpected move last week to adopt a negative interest-rate strategy.

Benchmarks 10-year yields touched 0.05 percent, 20-year yields reached an unprecedented 0.74 percent and two-year yields slid to a record minus 0.11 percent after the Bank of Japan on Friday unexpectedly cut the rate on excess reserves held by financial institutions at the central bank to minus 0.1 percent. Expectations for price swings for debt over a 60-day period soared on Friday to the highest since July.