Negative-Yield Debt in Japan Hasn't Looked This Good Since 2008
- Foreign buying of super-long JGB climbs to highest since 2014
- Global-growth slowdown drives funds toward JGBs, Daiwa says
This article is for subscribers only.
Japan’s negative-yielding bonds were a surprise beneficiary of the collapse in global rates in July.
Foreign investors more than doubled purchases of the nation’s debt last month to 2.88 trillion yen ($27 billion) from 1.28 trillion yen in June, according to data from Japan Securities Dealers Association. The bulk of purchases were in the two-to-five-year bracket, where the extra yield that can be gained over Treasuries using currency forwards swelled to the highest in a decade.