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.
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