Japan’s 2-Year Note Trades With Yield Near Zero

Japan’s two-year government notes went untraded for most of the day after yields yesterday reached zero for the first time, following the central bank’s decision to push ahead with record asset purchases.

Japan Bond Trading Co., the nation’s largest inter-dealer debt broker, said there were no trades in two-year notes up until 3 p.m. in Tokyo. Yields fell yesterday after the Bank of Japan board voted 8-1 to continue expanding the monetary base at an annual pace of 80 trillion yen ($674 billion).

“We could see positive supply-and-demand conditions spread from the front of the JGB yield curve,” said Katsutoshi Inadome, Tokyo-based fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities Co.


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