Chart No. 211
Rates
7 min read
Members
Japan's 10-year finally means something.
For a decade the JGB 10-year was a policy decision, not a price. At 1.62% it is a price again, and Japanese insurers are doing the arithmetic.
Tomás Ferreira
Contributor
Illustrative data based on public sources.
JGB 10Y · USDJPY
For most of the last decade, the yield on a 10-year Japanese government bond was set by the Bank of Japan, not by investors. At 1.62%, it is a price again.
Japanese life insurers and pension funds own more than $3 trillion of foreign bonds. For years they bought them because home paid nothing. Once hedging costs are counted, a 10-year JGB now pays more than a hedged US Treasury.
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Not investment advice. Carry writes about markets; it does not tell you what to buy or sell. Charts use illustrative data unless a source says otherwise.
