Switzerland Sweden: Bloomberg calculations count money made on bills and notes that now have negative yields out to five-year maturities, according to The Japan Times. Japan follows Germany, Switzerland and Sweden in being able to get investors to pay it to raise funds, a windfall that will help Prime Minister Shinzo Abe tackle the world largest debt burden. While some of the bonds still pay coupons, prices on the securities are so high that the Ministry of Finance sells them for more than it costs to pay interest on the debt. On the downside, Bank of Japan asset purchases and charges on some lenders’ reserves have reduced bond-market activity and squeezed earnings for banks and their customers. However, it will only slow the pace of increase in the national debt, not actually cut it. This is a plus for the nation immediate finances, said Hidenori Suezawa, a monetary and fiscal analyst at SMBC Nikko Securities Inc.
(news.financializer.com). As
reported in the news.
Tagged under Switzerland Sweden, Bank of Japan topics.