As Much as Japanese Love Treasuries, Yen Bonds Are Safer

For Japanese investors who are snapping up Treasuries, the outlook for yields suggests they’d be better off keeping their money in bonds at home than buying more now.

Ten-year Japanese government yields will rise to 0.47 percent by year-end from 0.36 percent Wednesday, according to a Bloomberg survey of economists. While bond prices would fall, the loss would be less than 1 percent after accounting for interest payments. For Treasuries, the forecast is for an increase to 2.56 percent from about 1.88 percent, for a 4 percent loss, based on data compiled by Bloomberg.