Why Japanese Bonds Yielding 1.3% Offer Highest Return
Nowhere are yields as low as in Japan’s debt market and nowhere are returns higher as Prime Minister Yukio Hatoyama’s government fails to stop deflation... The combination of the fastest drop in consumer prices in five decades and the yen trading at about a 14-year high has turned Japanese government bonds into the past month’s best performers among the 26 markets tracked by Bloomberg and the European Federation of Financial Analysts Societies. The debt returned 3.6 percent in dollar terms and 5.6 percent in euros. So-called JGBs rose 0.83 percent this year in local currency... Bloomberg:
