By Giles Coghlan, Chief Currency Analyst at HYCM
50 year yield via Bloomberg
If Japan do go ahead with a 50 year bond yield, what might that offer investors? Let's look at Swiss and UK bonds.
In Switzerland bond investors who extend from 30 year bonds to 50 year bonds will receive an extra 7bps.
In the UK 50 year bonds earn 9bps less than 30 year bonds.
For Japan, the 40 year bonds currently offer a 3 bps yield more then 30 year bonds, which would indicate that a 50 year Japanese bond should offer even more of a return. So, the short term indication would be for a higher 50 year yield if JGB is sold.
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