BOJ effect: Japan's corporate debt yield hits record low of 0.0000000091% - Bloomberg

Omkar Godbole FXStreet Contributor

Japan's corporate debt yield has hit a record low of 0.0000000091%, courtesy of Bank of Japan's market-distorting ultra-low rate policy, according to Bloomberg.

Toyota Finance Corp. will be issuing two tranches of JPY 20 billion in three-year and five-year bonds each on Oct. 25, it said last week. Notably, the three-year note will yield an unprecedently low 0.0000000091%, which means a trader buying 1 billion Yen of the bonds wouldn't even make 1 Yen on maturity.

Even so, the demand for the three-year note was brisk, according to underwriters.

The record low yield comes a month after the Bank of Japan said it will buy corporate bonds worth about JPY 125 billion on Oct. 24 and about JPY 100 billion on Nov. 29.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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