Mood in the bond market is bad, MassMutual’s Shimamura says.
BLOOMBERG.COM

Japan’s 10-year bond yield rose to zero for the first time in almost two months amid speculation investors will be drawn to the higher payments Treasuries offer following Donald Trump’s election in the U.S. The extra yield from 10-year Treasuries compared to similar-maturity Japanese government bonds widened to about 2.28 percentage points on Monday, the most on a closing basis since January 2014. The payments on U.S. debt have climbed over the past week on concern increased spending by Trump’s administration will spur inflation and lead the Federal Reserve to raise interest rates. “Why don’t we invest in the U.S. and forget about JGBs?" said Kazuaki Oh’E, the head of fixed income at CIBC World Markets Japan Inc. in Tokyo. Japan’s 10-year yield climbed 1 1/2 basis points to zero as of 4:27 p.m. in Tokyo, according to Japan Bond Trading Co. It has rebounded from the record low of minus 0.3 percent set in July. The nation’s central bank said in September it aims to anchor the yield at about zero.

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