The BOJ's Comprehensive Policy Review
Japanese companies keen to lock in ultra-low borrowing costs for the next couple of decades face the risk that their best opportunity to do so is slipping away. Investors may shy away from longer notes amid concerns the Bank of Japan could cut purchases of super-long debt, threatening to end a recent surge in issuance of yen-denominated bonds due in 20 years or more, according to Daiwa Securities Group Inc. The yield on corporate securities of 15 years or more rose 13 basis points in July to 0.49 percent, with investors losing 1.94 percent in the period, data from Nikko Research Center show. The jump in yields exceeded the 5 basis-point increase on short-term debentures. UBS Head of U.K. Rates Strategy John Wraith discusses with Bloomberg's Francine Lacqua on "The Pulse."