Skip to content

Yen Credit Escapes Sharp Selloff Seen for Asian Dollar Bonds

  • Bloomberg’s Japanese corporate index is down just 0.6% in 2022
  • BOJ isn’t joining global peers rushing to raise interest rates
Bloomberg business news
BOJ Is Going to Stay on Hold for Now: HSBC’s Neumann

Yen-denominated corporate bonds are a relative bright spot for Asia credit investors, losing less so far this year than dollar notes as the Bank of Japan keeps its commitment to easy monetary policy.

The Bloomberg Asian-Pacific Japanese Corporate Index is down just 0.6% in 2022. That compares with a 9.4% slump in the Asia investment-grade dollar bond gauge, which like fixed income assets around the world has tumbled amid skyrocketing inflation and rising U.S. interest rates. A wave of risk aversion caused the region’s stocks and bonds to slip on Friday.