In the News
Japan issues a 10 year government bond with a negative yield
The Japanese bond market had an historic day on Tuesday, selling 10-year bonds at a negative rate or yield. The news was the front page headline in the Financial Times. It seems that the negative yields were the direct result of speculators happy to buy the 10 year government paper for a short period of time in the expectation that the Japanese central bank will buy them back at a higher price as part of the quantitative easing policies designed to stimulate the Japanese banking system.