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Japan’s ten-year bond yield becomes negative

On Tuesday, Japanese long-dated bond prices grew, thus taking the yield on the country’s benchmark ten-year bond to negative territory for the first time.   

American treasury yields don’t change a lot after falling abruptly during early Asian trading.  

Japan’s ten-year bond is demonstrating a negative yielding of 0.027% right after a Tuesday falling five basis points. At the same time, the Japanese yen soared against the greenback, which dipped to ¥114.20, its lowest value since November 2014.

The sag in the evergreen buck against the main Japanese currency has much to do with the decreasing prospects of any future rate hikes in America, rather than Japan’s current monetary policy, as chief market analyst of The Lindsey Group LLC, Peter Boockvar points out.     

The analyst also added that the greenback has grown enough over the past year in in contemplation of rate increases this year, though it’s unlikely that the Fed’s about to do it, especially taking into consideration today’s weakness of the US economy.  

Peter Boockvar also thinks that there’s a higher probability of not seeing another 25 basis-point rate increase in America soon, which can’t be said about a ten basis-point cut in Japan’s deposit rates last week.    

 

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