Japan Real Time Charts and Data

Edward Hugh is only able to update this blog from time to time, but he does run a lively Twitter account with plenty of Japan related comment. He also maintains a collection of constantly updated Japan data charts with short updates on a Storify dedicated page Is Japan Once More Back in Deflation?

Sunday, May 11, 2003

Japan: The Rush to Bonds Continues

While the floor continues to fall out of the equity markets, the queue to buy bonds lengthens. Consequence: the yield on ten year bonds hits another historic low, and deflation expectations become more entrenched than ever.

The yield on the benchmark 10-year Japanese government bond hit a historic low on Monday, as investors flocked to the safe haven of JGBs after the stock market closed at a new 20-year low.

The 10-year JGB was up 0.23 at 100.42, pushing the yield down 0.025 to 0.655 per cent, a record low. The key 10-year JGB futures contract was down 0.03 at 143.09. The yield on the 20-year JGB also fell to a record low of 0.995 per cent.

Japanese stocks plumbed a new 20-year low on Monday, as downward pressure was exacerbated by pension-fund selling. The benchmark Nikkei 225 average was off 0.8 per cent to 7,795.49, as shares continued their decline for a fifth straight session.

Investors are looking ahead to Thursday's Y800bn auction of 20-year JGBs, with an expected coupon of one per cent. Demand for the issue is expected to be robust, amid a dearth of other attractive investment opportunities.
Source: Financial Times