A Japanese agency priced a bond with a negative yield for the first time, in a sign that such debt sales may increase in the nation amid the global tumble in interest rates.
Japan Student Services Organization priced 30 billion yen ($281 million) of two-year notes with a coupon of 0.001% and a price of 100.003 yen, working out to a yield of around minus 0.0005%. While government-backed organizations have sold debt yielding less than zero in auctions in the past, this was the first public offering of such a bond by an agency, Bloomberg-compiled data showed.