On Friday, yield on Japanese 10-year bonds hit a record low -0.135%. According to Bloomberg, the chief strategist of  Bank of America Merrill Lynch in Tokyo stated those 10-year bonds look "relatively cheap".

Supposedly they are relatively cheap compared to "other tenors". I presume he means 20-year securities yielding a record low 0.29%.

Meanwhile, the head of fixed-income investment at PineBridge Investments Japan offered this amazing tidbit: Investors are buying shorter-dated debt "as there aren't enough 30-year, 20-year bonds available."

Bond Shortage Proposal

Mercy me! There's an outright shortage of 20 and 30-year Japanese bonds. Japan better float 20 quadrillion Yen worth of them pronto.

If that sounds absurd, then please consider additional details from the Bloomberg report Japan 10-Year Yield Drops to Record, Below Negative Deposit Rate.