Negative Yields in Japan Don’t Look So Bad With Deflation
- Japan 10-year real yield of 44 bps beats 30 bps for the U.S.
- Yields are too skimpy for Samsung Asset, Japanese insurers
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If you thought Japan’s negative yields don’t offer any value, take a look at the nation’s fall back into deflation.
The 10-year Japanese government bond yield of minus 0.065 percent turns into a real yield of about 44 basis points, near a three-year high, after accounting for consumer prices. The figure beats the U.S. 10-year real yield of about 30 basis points.