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Mar 9, 2016

Japan’s bonds are worth basically nothing — or less

You can make less than half a percent over 30 years for loaning the government money.

Final Noteby Kai Ryssdal
A man looks at a screen showing global stock market information on the street in Tokyo on August 25, 2015. 
A man looks at a screen showing global stock market information on the street in Tokyo on August 25, 2015. 
Chris McGrath/Getty Images

You know how we always say follow the bond market if you want to know where an economy’s going?

With that in mind, consider the yield on the Japanese long bond today: 0.458 percent. So when you lend the Japanese government money for 30 years, you’ll get twice-yearly payments equal to 0.458 percent of what you put up. So basically nothing.

It’s also worth noting that if you buy the Japanese ten-year bond, you actually have to pay for the privilege.

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