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Japan Leading the Way as Worldâ??s Most Volatile Bond Market

For the most part, Japanese Prime Minister Shinzo Abeâ??s sweeping economic changes have been a boon to the moribund Japanese economy.

Japan Leading the Way as Worldâ??s Most Volatile Bond Market (CNBC)

For the most part, Japanese Prime Minister Shinzo Abeâ??s sweeping economic changes have been a boon to the moribund Japanese economy. To date, the plan has achieved modest success in devaluing the Japanese yen. The yenâ??s devaluation, in turn, is expected to generate an inflation rate of 2 percent and jumpstart the countryâ??s export business. Unfortunately, Honest Abeâ??s plan has turned the worldâ??s second-largest bond market into its most volatile one. In fact, since last Thursday, the yield on 10-year Japanese government bonds has ballooned by 26 basis points. And that trend is expected to continue as investors dump their bonds for stocks. Will you follow that lead, or steer clear of Japanese debt all together?

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Japan Leading the Way as World’s Most Volatile Bond Market

Japan Leading the Way as World’s Most Volatile Bond Market (CNBC)

For the most part, Japanese Prime Minister Shinzo Abe’s sweeping economic changes have been a boon to the moribund Japanese economy. To date, the plan has achieved modest success in devaluing the Japanese yen. The yen’s devaluation, in turn, is expected to generate an inflation rate of 2 percent and jumpstart the country’s export business. Unfortunately, Honest Abe’s plan has turned the world’s second-largest bond market into its most volatile one. In fact, since last Thursday, the yield on 10-year Japanese government bonds has ballooned by 26 basis points. And that trend is expected to continue as investors dump their bonds for stocks. Will you follow that lead, or steer clear of Japanese debt all together?

Newsletter Signup.

Sign up to the Human Events newsletter

TRENDING NOW:

Today a Milkshake, Tomorrow A Brick: Corporate-Backed Political Violence Is Here.

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Buzzfeed Bashes 14-Yr-Old Trump Fan, Celebrates Kids in Drag.

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The Lived Experience of Candace Owens.

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Al Jazeera: ‘Jews Exploit Holocaust’.

FOREIGN AFFAIRS

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