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As 10-year yield turns negative, insiders say something has to give

A screen shows a long-term JGB yield of -0.03, down 0.065 of a point, in Tokyo on Feb. 9.

TOKYO -- The yield on the benchmark, newly issued 10-year Japanese government bond entered uncharted territory on Tuesday, dipping to minus 0.035%. The decline below zero followed the Bank of Japan's decision on Jan. 29 to set a negative interest rate on deposits it holds for commercial banks.

     BOJ Gov. Haruhiko Kuroda has touted his monetary policy combo -- quantitative and qualitative easing coupled with a negative rate -- as the "most powerful" set of measures, and indeed, rates have come down. Yet some experts say the new state of the bond market is unsustainable.

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