Japan stands alone as it keeps on issuing bonds

The Japanese economy has been experiencing a prolonged slump for almost a decade, with the stock market either falling or flattening during this period. Bob Attridge, head of fixed interest at Old Mutual Asset Managers points out that yields are very low, with 10 year bonds offering 1.79% though, with inflation, real yields are higher at around 2.8%. "Japanese government bonds are not very attractive, given the size of the fiscal deficit and the stock of government debt outstanding, at about 135% of GDP," he says. "In contrast, the Maastricht criteria for European countries' entry into t...