DM Government Bonds Trading With Negative Yields Reach 30%

Negative Yields land here we come! The Bank of Japan (BoJ)’s surprise move last week to trim its policy rate to negative territory will most likely strengthen Japanese investors’ foreign bond purchase going forward, believe JPMorgan analysts. Nikolaos Panigirt and colleagues said in their Jan. 29 research report titled “Flows & Liquidity” that the BoJ’s policy actions are effectively forcing the ECB to chase its own tail and extend the duration of its purchases.

Negative Yields – BoJ joins several European banks with negative Depo rates

According to the JPMorgan analysts, following the BoJ’s surprise move last week, the universe of DM government bonds trading with a negative yield rose to a record high of $5.5 trillion or 24% of the JPM Global...