Japan's Ten-Year Yield Falls to Zero for the First Time
- Switzerland only other nation to see 10-year go negative
- Japan has more than half its bonds yielding zero or less
What’s Next For Policy in Japan?
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The yield on Japan’s benchmark 10-year government bonds fell below zero for the first time, an unprecedented level for a Group-of-Seven economy, as global financial turmoil and the Bank of Japan’s adoption of negative interest rates drive demand for the notes.
The 10-year yield has tumbled from 0.22 percent before the BOJ surprised markets with the decision on Jan. 29 to introduce a minus 0.1 percent rate on some of the reserves financial institutions park at the central bank. It fell 7 1/2 basis points to a record minus 0.035 percent as of 3:05 p.m. in Tokyo.