Bonds in the U.S. and much of the rest of the developed world suggest the future of interest rates is Japanese. Banking profits and monetary policy options for the U.S. are likely to follow in time. The gap between yields on long-dated government bonds in the rest of the developed world and yields on Japan’s equivalent debt have shrunk dramatically: As of this week, the spread between the ICE Bank of America 15+ Global Government ex. Japan Index and 30-year Japanese government bonds amounts to less than 0.4 percentage point,...

Source: Wall Street Journal July 03, 2020 08:02 UTC