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Economy

BOJ to face challenges with negative-rate policy

TOKYO -- The Bank of Japan's decision to adopt negative interest rates has pushed bond yields to record lows, but concern is growing about how long such an approach can be sustained in conjunction with the central bank's massive quantitative easing policy.

     "If the BOJ applies negative rates to current accounts, it'll be better to invest in government bonds, since they at least have some positive yields," an asset manager at a Japanese bank said. With the shift of funds, yields of longer-dated Japanese government bonds are declining.

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