Japan’s Bonds Hold Above 0% Even as More Debt Goes Negative
- Investors see little prospect of further BOJ rate cuts
- Funds have little interest in 10-year debt with sub-zero yield
This article is for subscribers only.
Japan’s benchmark bond, once a landmark for negative rates, is holding above 0% even as the world’s pile of negative-yielding debt surges.
A perception that the Bank of Japan won’t cut rates, limited foreign demand and the potential for more debt sales will keep the 10-year yield from a sustained slide below 0%, according to analysts in Tokyo. The amount of bonds with negative yields globally has jumped over 40% this year to almost $16 trillion.