|Published : 19 Apr 2017, 18:02:53|
Japanese govt bonds attract investors, though yield goes into negative territory
Investors are warming toward havens, like Japanese government bonds (JGBs), again, taking the ability of Trump administration in the USA to push through its pro-business reforms as well as geopolitical tensions related to North Korea into consideration, according to a global media report.
This tends to be happening now amid growing scepticism about a global reflation trade, it indicated.
The yield on Japan’s benchmark 10-year government bond fell below zero for the first time since mid-November on Wednesday, bringing JGBs even closer to recouping their losses suffered in the wake of Donald Trump winning the US presidential election, the report said.
In early February, 10-year JGB yields had been as high as 0.116 per cent, their highest level since late January 2016, the report added while noting that the Bank of Japan (BoJ) decided then to take benchmark interest rates into negative territory for the first time.