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JGBs less risky than Treasurys for first time in seven years

CMA's sovereign default risk indicator reflects US political reality

The Bank of Japan announced the negative-rate policy on Jan. 29, 2016.

TOKYO -- Japanese government bonds are less risky than U.S. Treasurys for the first time in seven years -- and the reason appears to be politics.

According to Credit Market Analysis, a U.S.-based research firm, the dollar-denominated spread of credit default swaps, or default-risk premium, on five-year JGBs in January fell below that of their U.S. equivalents for the first time since June 2009.

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