Hedge Funds Circle as Japan’s Asset Bubble Grows
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May 22 (Bloomberg) -- It’s limbo, Japanese-style: How lowcan bond yields go without triggering a meltdown?
This question gains urgency as 10-year government yieldsdisappear before the world’s eyes. At 0.83 percent, the lowestlevel since 2003, they hardly compensate investors for the risksinherent in buying IOUs from the most indebted nation. Publicdebt is more than twice the size of the $5.5 trillion economy.Worse, it’s still growing. Fitch Ratings today lowered thesovereign-credit rating by one step to A+ with a negativeoutlook because of Japan’s “leisurely” efforts to cut debt.