Japan’s JGB Market Regulatory Framework Was Not Designed for Yields at These Levels
The Nikkei 225 closed at its all-time high of 58,850 on Friday, a milestone that eclipsed the previous bubble-era peak. On the same day, the 30-year Japanese government bond yield reached levels that Japan’s fixed-income regulatory framework has not encountered since the framework was established. The JGB market’s infrastructure, including the Bank of Japan’s bond…
