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Diminishing bond returns hit household financial products

Long-term rates at all-time lows are eating into financial institutions' returns.

TOKYO -- The Bank of Japan's decision to adopt negative interest rates will likely hurt individuals before it helps them, with banks cutting deposit rates while life insurance companies mull higher premiums.

     The yield on benchmark 10-year Japanese government bonds reached a record low of 0.02% Friday, a week after the central bank's announcement. The slide in stocks and the yen's appreciation against the dollar have fueled speculation that the BOJ will loosen monetary policy further, pushing down yields across a wide range of maturities.

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