- Longer dated Japanese government bond yields declined to new depths overnight, with the 7-, 10-, and 30-year benchmark yields all setting new record lows.
- Although the JGB market figures are not unusual since the BOJ cut interest rates below zero, the scale of the rally for the 30-year bonds was pronounced, suggesting investors are scrambling for yield against a backdrop of poor economic data and deflationary pressures.
- U.S. treasuries gained with the Japanese bonds, as stock-market declines drove demand for the relative safety of sovereign debt.
- 10-year treasury yield -6 bps to 1.84%
- ETFs: JGBS, JGBD, JGBL, JGBT, JGBB, TBT, TLT, TMV, TBF, EDV, TMF, TTT, ZROZ, TLH, SBND, VGLT, UBT, DLBS, TLO, TENZ, LBND, DLBL, TYBS, VUSTX