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Japan's Bond Yields Plunge to Records on BOJ's Minus Rate Policy

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Japan’s bond yields dropped to unprecedented levels after the central bank adopted a negative interest-rate policy on Friday, while maintaining its record asset purchase plan.

The benchmark 10-year yield touched 0.09 percent, falling past the low of 0.19 percent set on Jan. 14, after Bank of Japan Governor Haruhiko Kuroda’s board voted 5-4 to put an interest rate of -0.1 percent on current accounts held at the bank. The BOJ pledged to keep increasing the monetary base at an annual pace of 80 trillion yen ($666 billion), primarily by continuing to purchase Japanese government bonds, exchange-traded funds and real estate investment trusts.