Tag Archives: BOJ

60% of Japanese Sovereign Bonds Are Experiencing Negative Yields

In our last piece, we discussed the Bank of Japan’s (BoJ) monetary policy and how the yields of Japanese sovereign bonds have responded since 2016. The latest BoJ minutes released on June 26, 2017, reiterated that it “should continue with the current monetary policy,” while it also stated that it is “necessary to reduce the Read more […]

Have We Seen the Bottom in Japanese Bond Yields?

While the idea of reflation is picking up steam in global markets, Japan’s core consumer price index rose 0.2% in February 2017, which remained far below the target of 2% set by the Bank of Japan (BoJ). The BoJ kept monetary policy steady in March 2017, continuing the diverging policy paths of central banks. In Read more […]

Asian Fixed Income: Did the FOMC Affect Asian Sovereign Bonds?

The U.S. Federal Reserve recently announced a rate hike of 0.25%, while indicating more rate hikes are likely in 2017.  As of Dec. 21, 2016, the S&P U.S. Treasury Bond Index had lost 0.58% for the month, bringing its total return to 0.06% YTD, while its yield widened 27 bps to 1.75% in the same Read more […]

How a Negative Interest Rate Affected the Japanese Bond Market

Since the Bank of Japan announced a negative interest rate policy earlier this year, both government and corporate bond yields have decreased (see Exhibit 1).  After hitting a record low yield of -0.23% on July 8, 2016, the S&P Japan Government Bond Index rebounded following a modest stimulus announcement later that month.  As of Sept. Read more […]

Top Three Questions About Japan’s Bond Market

Question One: How big is Japan’s local currency bond market?  How does it compare to China’s bond market? The size of the local currency bond market in Japan (tracked by the S&P Japan Bond Index) stood at JPY 1,154 trillion as of Jan. 27, 2016, which is equivalent to USD 9.7 trillion.  It is 1.7 Read more […]

Euphoria vs. Anxiety

A heavy weight battle over economic policy and financial markets is brewing between the Bank for International Settlements (BIS) in one corner and the International Monetary Fund (IMF) in the other. Meanwhile the world’s major central banks may be lining up on one side or the other with the Bank of England (BOE) moving towards Read more […]