Negative Yields Seen Driving Japanese to Prefer Europe Over U.S.

Updated on
  • Japan's 10-year yield dropped to record minus 0.035% this week
  • Dollar hedging costs soar as Libor gap at widest since 2009

Japanese investors face a surge in dollar-hedging costs that’s making European bonds more enticing than Treasuries as a haven from sub-zero domestic rates.

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