Japanese Bonds Draw First Negative Yield

October 23, 2014 Share Print 0

An auction of three-month treasury discount bills held by the Finance Ministry on Thursday drew the average yield of minus 0.0037 percent among successful bids, the first negative yield in the primary market for Japanese government securities.

The negative yield reflects supply shortages in the secondary market as the Bank of Japan is purchasing large amounts of government securities under its quantitative and qualitative monetary easing policy introduced in April last year.

On the back of the BOJ monetary easing campaign, short-term government securities have already seen negative yields in the secondary market.Speech

via Japan News

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.