The Bank of Japan may be running out of options to ease monetary policy and weaken the yen after Japan's 20-year government bond fell below zero for the first time ever on Wednesday. The 30-year yield was just 0.015%, as investors sought safety following Brexit. "The Japanese economy is in a state of shock right now," said Michael Hewson, chief market analyst at CMC Markets Asia.
The Bank of Japan may be running out of options to ease monetary policy and weaken the yen after Japan's 20-year government bond fell below zero for the first time ever on Wednesday. The 30-year yield was just 0.015%, as investors sought safety following Brexit. Further downward pressure on yields in Japan is expected, due to the anticipation the Bank of Japan will further reduce rates at its July 28-29 policy meeting, Sumitomo Mitsui analyst Masahiro Ichikawa said.