Photographer: Tomohiro Ohsumi/Bloomberg

U.S.-Japan Real Yield Gap Turns Most Negative Since 2013: Chart

The difference between inflation-adjusted bond yields in the U.S. and Japan has slumped to levels not seen since mid-2013, after the Federal Reserve’s latest policy statement fueled a pickup in consumer-price expectations even as fixed-income rates fell. The five-year real-yield spread dropped to minus 9 basis points yesterday, the least since June 2013. The trend, if extended, threatens to erode the dollar’s appeal against the yen.