Japan's Negative-Yield Bonds Return More Than Double Treasuries
- Negative yields are proving to be no deterrent to investors in Japan’s bonds.The nation’s government debt has returned 5.8...
Negative yields are proving to be no deterrent to investors in Japan’s bonds.
The nation’s government debt has returned 5.8 percent in the past six months, the most of 26 sovereign debt markets tracked by Bloomberg. Treasuries gained 2.2 percent.
Japanese bonds due in as much as a decade Yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a less than zero, leading investors in the nation to hoard older securities that offer more attractive Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl . Bank of Japan Governor Haruhiko Kuroda has said he won’t hesitate to increase the record monetary stimulus that’s pushing yields down, while Federal Reserve officials suggest they’re moving closer to raising U.S. interest rates.
“For people who think they have to buy in a high-yield country, this is a mistake for the time being,” said Hideo Shimomura, the chief fund investor at Mitsubishi UFJ Kokusai Asset Management in Tokyo, which oversees about $106 billion. “It’s not a conventional period.” Over the coming years, higher-yielding countries will probably outperform their peers, he said.
Bonds were little changed in Asian trading, with Japan’s benchmark 10-year yield at negative 0.1 percent and that for Treasuries at 1.89 percent as of 11:39 a.m. in Tokyo.
With the BOJ buying unprecedented amounts of debt and using negative interest rates, Kuroda reiterated this month he’ll do more if needed.
Fed Bank of St. Louis President James Bullard said Wednesday policy makers should consider raising interest rates at their next meeting in April. Fed Bank of Philadelphia President Patrick Harker said this week the U.S. economy is resilient, and he’d support a quarter-point increase if that continues. Bullard votes on monetary policy this year while Harker doesn’t.
To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net. To contact the editors responsible for this story: Garfield Reynolds at greynolds1@bloomberg.net, Jonathan Annells, Tomoko Yamazaki
By: Wes Goodman
©2016 Bloomberg News
Negative yields are proving to be no deterrent to investors in Japan’s bonds.
The nation’s government debt has returned 5.8 percent in the past six months, the most of 26 sovereign debt markets tracked by Bloomberg. Treasuries gained 2.2 percent.
Japanese bonds due in as much as a decade Yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a less than zero, leading investors in the nation to hoard older securities that offer more attractive Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl . Bank of Japan Governor Haruhiko Kuroda has said he won’t hesitate to increase the record monetary stimulus that’s pushing yields down, while Federal Reserve officials suggest they’re moving closer to raising U.S. interest rates.
“For people who think they have to buy in a high-yield country, this is a mistake for the time being,” said Hideo Shimomura, the chief fund investor at Mitsubishi UFJ Kokusai Asset Management in Tokyo, which oversees about $106 billion. “It’s not a conventional period.” Over the coming years, higher-yielding countries will probably outperform their peers, he said.
Bonds were little changed in Asian trading, with Japan’s benchmark 10-year yield at negative 0.1 percent and that for Treasuries at 1.89 percent as of 11:39 a.m. in Tokyo.
With the BOJ buying unprecedented amounts of debt and using negative interest rates, Kuroda reiterated this month he’ll do more if needed.
Fed Bank of St. Louis President James Bullard said Wednesday policy makers should consider raising interest rates at their next meeting in April. Fed Bank of Philadelphia President Patrick Harker said this week the U.S. economy is resilient, and he’d support a quarter-point increase if that continues. Bullard votes on monetary policy this year while Harker doesn’t.
To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net. To contact the editors responsible for this story: Garfield Reynolds at greynolds1@bloomberg.net, Jonathan Annells, Tomoko Yamazaki
By: Wes Goodman
©2016 Bloomberg News