by Mike ‘Mish’ Shedlock
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.”