Long-term interest rate temporarily declines to minus 0.215%
The US-China trade friction has become even more intense and the global economy has slowed down, and there has been a movement to sell stocks and buy government bonds. Temporarily decreased to minus 0.215%.
In the bond market on the 6th, there was a movement to buy Japanese government bonds, which are considered to be relatively safe assets, as the global economic outlook has become uncertain due to intensifying trade friction between the United States and China. JGBs have a relationship in which the yield decreases as the number of buyers increases and the price increases.
As a result, the yield on government bonds with a maturity of 10 years, which is a typical indicator of long-term interest rates, temporarily dropped to minus 0.215% in the morning of the 6th. The long-term interest rate is below 0.2% for the first time in about three years.
Investors believe that the BOJ, which continues monetary easing measures to reduce long-term interest rates to around 0%, accepts fluctuations of up to minus 0.2%.
However, it will be noted how the Bank of Japan will respond if it continues to fall below the lower limit in the future.