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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.