TOKYO -- The Bank of Japan has managed to stabilize long-term interest rates at its target level of around 0%, but its efforts have sapped vitality out of the Japanese government bond market and may have planted the seeds of future volatility.
Japan Bond Trading, which brokers buying and selling of bonds among dealers, did not handle any trades of newly issued 10-year JGBs on May 1. On Monday, the first transaction in the benchmark government debt security did not go through until the evening trading session.
