Tim Price, Director at PFP Wealth Management presents the curious case of the Japanese bond markets, which interestingly have rallied sharply in 2016, pushing yields into the negative territory. Price focuses on 40-year Japanese government bond (JGB), which as rallied 40% since the start of the year and which yields just 7 basis points.
This, according to Price, makes Japanese stock markets more attractive. Price also talks about post Brexit situation in the UK and weighs in on UK property market fund. Price’s focus on JGB will convince viewers that we are operating in a new normal, given the world’s most indebted nation is able to borrow at a ridiculously low yield. Japan has one of the highest Debt to GDP ratio and the yield on the 10-yr bond is negative!