Japan joins Germany in bond yield slide

Tokyo

JAPANESE bonds rose in the latest leg of a worldwide surge in government securities, with five-year yields matching Germany's at zero per cent, as tumbling oil costs indicate inflation will slow.

The effective yield on the Bank of America Merrill Lynch Global Broad Market Sovereign Plus Index dropped to 1.21 per cent on Monday - a record low in data starting in 1996. Australia's 10-year yield declined to its lowest level ever. Germany's bonds have touched negative levels every day this month. Switzerland's closed on Monday at a record-low minus 0.127 per cent.