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The entire country is insolvent. If they had a 2% interest rate on their bonds (normal), their entire tax revenue wouldn't even cover debt service.

Why anyone is willing to PAY Japanese treasures with a negative yield is beyond me. Why not just buy US Treasuries and get a better yield?




Because funding costs for hedging cross currency trades have gone up ever since the Fed has started raising rates and largely reduced returns or in some cases even caused negative returns. Funding costs have exceeded rate hikes 1:1 and this has caused the foreign buyer base to drop sharply for UST.




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