TOKYO: The five-year Japanese government bond yield hovered near a record low on Tuesday as safe-haven demand exacerbated a decline in yields driven by the Bank of Japan's extensive easy policy.
The five-year yield was down half a basis point at 0.005 percent after touching a record low of zero percent.
Yields have been declining in other sovereign debt markets as tumbling oil prices have dimmed the allure of risk assets and increased investor demand for safe havens.
Bond market participants see it as a matter of time before the five-year JGB yield falls below zero percent, with the two-year debt yield already entrenched in negative territory.
Yields of other five-year sovereigns, like Swiss and German debt, are already in the negative.
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