Re-evaluating ‘Stimulus’ By Market Force

by Jeffrey P. Snider
Alhambra Partners

On July 2, 2015, the 10-year Japanese Government Bond (JGB) traded to a stout closing yield of 0.511%. That was up significantly, in Japanese financial terms, from the start to the year where the benchmark bond yield had tumbled to as low as 0.206% supposedly in the aftermath of QQE expansion. The Bank of Japan had added to its already-disgusting pace of JGB purchasing at the end of October 2014, where the 10-year yield had been 0.466%. As of yesterday’s close, the JGB 10s yield -0.133%.

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