Yen Surge, Fed Gloom Threaten to Trap Japan Funds in Low YieldsBy , , and
If yen rises, `difficult to pursue foreign bonds:' MassMutual
Currency has gained 8% in 2016, most among Group-of-10 peers
The prospect of a stronger yen and U.S. yields staying lower for longer looks set to slow Japanese fund managers’ global hunt for yield.
Japanese investors turned net sellers of U.S. Treasuries in January for the first time in seven months and also offloaded U.K. and German bonds, Ministry of Finance data showed. The yen has strengthened about 8 percent this year against the dollar, the most among 10 major currencies, and strategists have been trimming forecasts for declines as the Bank of Japan’s negative rate policy only served to heighten anxiety over the global economy and demand for haven assets. The cost of hedging overseas investment is the highest since 2009 by one measure.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Smartphones Are Killing Americans, But Nobody’s Counting
- Turns Out It Will Be Congress’s Fault When Stocks Crash
- Why a Pub in the Middle of Nowhere Was Named the World’s Best Restaurant
- Facebook and Google Helped Anti-Refugee Campaign in Swing States
- Ford to Take $267 Million Hit From Recall of F-Series Trucks