Japan Got Paid $464 Million to Borrow Thanks to Negative Yields
- BOJ's stimulus drives five-year yield below zero at auction
- Ministry of Finance first enjoyed negative yields in Oct. 2014
Pedestrians walk past the Bank of Japan headquarters in Tokyo.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
Japan’s government has been paid at least 52 billion yen ($464 million) to borrow money since the yield on its debt first fell below zero at auction in October 2014.
While some of the bonds still pay coupons, prices on the securities are so high that the Ministry of Finance sells them for more than it costs to pay interest on the debt. Bloomberg calculations count money made on bills and notes that now have negative yields out to five-year maturities.