Japan has negative yields on 7-yr government bonds

By FXStreet FXStreet (Mumbai) – Bank of Japan (BOJ) ramped up its easing campaign by cutting its benchmark interest rate below zero to -0.10%.

The markets caught by surprise, responded by sending the yields on the 7-year Japanese government bonds (JGB) into the negative territory. The 7-yr yield fell to a low of -0.067% following BOJ’s announcement.

Meanwhile, the benchmark 10-yr yield fell to 0.11%. The move is also being read as a sign that the bank is no longer comfortable with the idea of increasing its JGB purchases and hence is resorting to negative rates.
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Source:: FX Street