Japan’s government bond yields sank below zero for the first time ever which caused a yield drop as low as 0.015%.
In the first days after Brexit, the yen was often the initial choice for investors, even more than the US dollar. Global markets reacted expeditiously after two British asset managers blocked investors from pulling money out of real-estate funds, sinking the British pound to a 31-year low.
The Japanese government bond yield TMBMKJP-20Y, -31.62% fell to -0.005% then later returned to positive and stayed at 0.025%, while the 30-year yield TMBMKJP-30Y, -26.79% got back to 0.04%.
Now BOJ sets a minus 0.1% interest rate on some deposits held at the central bank by commercial banks.