ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

BOJ purchases blamed for distorting Japan corporate bond market

TOKYO -- Fixed-income investors in Japan are increasingly assessing bonds based on their likelihood of being bought by the central bank, rather than the creditworthiness of the issuers.

     "I would have bought it at all costs had I known that it was on sale," a fund manager at a domestic asset management institution said with frustration Friday. The fund manager learned too late from Japan Securities Dealers Association data that a Mitsui & Co. bond had been traded the previous day. The bond, with about three years to maturity, was traded with a yield of around negative 0.008% -- meaning that a buyer paid a high price and would incur a loss if the instrument was held until maturity.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more