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Opinion
William Pesek

Why Japan's Debt Markets Are Frozen

By gobbling up an ever-larger number of bonds at auction and in the secondary market, the Bank of Japan governor Haruhiko Kuroda has essentially paralyzed the market. 
Big price swings are becoming a thing of the past in equity markets as well. 
Big price swings are becoming a thing of the past in equity markets as well. 

As Japangets the inflation it's been craving all these years, the bond market is doing something very surprising: nothing.

Far from panicking over each uptick in the consumer price index, traders are pushing Japanese government bond yields lower. Today's 10-year bond rate is 0.58 percent compared with 0.735 percent at the start of 2014, even though the CPI is rising at a 3.4 percent year-over-year rate. Anyone else confused?