Japanese and U.S. Government Bond Yields

August 17, 2010

Japan provides a good example of what happens to long-term interest rates when very low inflation or outright deflation occur. The ten-year JGB yield has averaged 1.45% since the end of 1997.  Such dropped below unity recently and is presently at 0.95%.  The yield first plumbed below 1.0% in 1998 during the Asian debt crisis, […] More