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IPFS News Link • Economy - International

Japan's Negative-Yield, Inverted Bond Market Close to Breaking Point

• mishtalk.com

The yield curve also inverts between 30 and 40 years, albeit in positive territory.

Inverted means longer-dated bonds yield less than shorter-dated bonds.

"It wouldn't be surprising to see some BOJ operations fail," said Yusuke Ikawa, a salesperson at UBS Group AG's Knowledge Network in Tokyo. "The biggest risk of that is in superlong bonds."

The above quote from an excellent Bloomberg article entitled Japan's Bond Market Is Close to Breaking Point.

Signs of stress are multiplying in Japan's government bond market, which is crumbling under pressure from the central bank's unprecedented asset-purchase program and negative interest rates.


www.universityofreason.com/a/29887/KWADzukm