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The yield on Japan’s benchmark 10-year government bond fell below zero for the first time since mid-November on Wednesday.

That brings JGBs even closer to recouping their losses suffered in the wake of Donald Trump winning the US presidential election.

The yield on the March 2027 JGB was down 0.7 basis points at minus 0.002 per cent on Wednesday morning, having fallen to as low as minus 0.004 per cent. Yields move inversely to price, and one basis point is equal to one hundredth of one percentage point.

In early February, 10-year JGB yields had been as high as 0.116 per cent, their highest level since late January 2016 when the Bank of Japan decided to take benchmark interest rates into negative territory for the first time.

Over the past two months, though, growing scepticism about a global reflation trade, the Trump administration’s ability to push through its pro-business reforms as well as geopolitical tensions related to North Korea have seen investors warm toward havens, like JGBs, again.

Chart courtesy of Bloomberg

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