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Record-Low 0.0000000091% Yield on Yen Bond Shows BOJ Effect

  • Toyota Finance Corp. is selling the three-year securities
  • Traders could still profit, if able to sell notes to BOJ later
Pedestrians walk past the Bank of Japan headquarters in Tokyo.

Pedestrians walk past the Bank of Japan headquarters in Tokyo.

Photographer: Akio Kon/Bloomberg
Updated on

Japan’s corporate debt market has marked a milestone with a record-low 0.0000000091% yield.

The landmark bond sale from a Toyota Motor Corp. unit highlights how the Bank of Japan’s ultra-low rate policy is distorting the market: not just by guiding rates to new lows but also by creating opportunities for traders to still profit.