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BOJ limits foreign profits on negative-yielding bonds

Published Tue, Aug 9, 2016 · 09:50 PM

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    Tokyo

    THE world's second-biggest bond market just became less profitable for outsiders.

    The Bank of Japan's decision to boost swap lines shrank the premium foreign investors enjoy when they buy negative-yielding Japanese debt, helping put a ceiling on the yields they can earn by purchasing bonds in the world's third-largest economy and swapping the funds back into dollars.

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