Friday, April 22, 2016

30 year Japanese government bond yield

Investors are currently willing to lend to the Japanese government across all time horizons for almost no return. This has been the case for some time for short-term funds (i.e. the front end of the yield curve) but we are now seeing close to zero yields on Japanese Government Bonds (JGBs) with a 30-year maturity. There will be a rationale behind this but that doesn't stop it being a pretty worrying sign that things are seriously amiss in the capital markets.

(chart via FT's twitter)

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