Alleged “Bond Shortage” as Japan Cruises Towards One “Quadrillion” Yen of Negative-Yielding Bonds

March 18, 2016

by Mike ‘Mish’ Shedlock
Mish Talk

Bond Shortage!

On Friday, yield on Japanese 10-year bonds hit a record low -0.135%. According to Bloomberg, the chief strategist of Bank of America Merrill Lynch in Tokyo stated those 10-year bonds look “relatively cheap”.

Supposedly they are relatively cheap compared to “other tenors”. I presume he means 20-year securities yielding a record low 0.29%.

Meanwhile, the head of fixed-income investment at PineBridge Investments Japan offered this amazing tidbit: Investors are buying shorter-dated debt “as there aren’t enough 30-year, 20-year bonds available.”

Continue Reading at MishTalk.com…

Financial Survival Network (FSN) content is informational only and based on information available at the time of creation. It is not an offer or solicitation, nor does it provide investment, tax, or legal advice. It may not consider your specific financial circumstances or objectives and may not be suitable for you. FSN content is not a recommendation to buy or sell any securities. Readers should consult their own professional advisers and conduct their own independent investigations before making any investment decisions. FSN does not guarantee the accuracy or completeness of its content or any third-party information it uses, which has not been independently verified by FSN. Readers are cautioned not to rely solely on FSN content for investment decisions.

FSN and its owner may have financial interests in the companies discussed and may trade such securities without prior notice. FSN is funded by sponsor advertisements, with payments ranging from five to ten thousand dollars monthly. FSN does not charge its viewers/listeners/readers any fees. By accessing FSN content, users agree that FSN and its affiliates are not liable for any inaccuracies, omissions, or representations in the content provided.