Japan's 10-Year Yields Now Above Treasuries After Hedging Costs

Dollar hedging costs have risen so much that the hedged yield on 10-year US Treasuries has fallen below that of Japanese government bonds for the first time in a sustained way in a decade. Japanese investors now receive a hedged yield of 0.05% on Treasuries versus 0.13% on JGBs.

The recent jump in US Treasury yields has not made them more attractive to Japanese investors.