JGBs Become Asia’s Worst Bonds as Hard-to-Read BOJ Drags on Debt

Japanese government bonds have become the worst-performing sovereign debt in Asia-Pacific due to concern that the Bank of Japan’s monetary policy moves have become less predictable than its peers.

JGBs have lost about 3% this year, overtaking Singapore as the sharpest declining bonds in the region, according to the Bloomberg Global Return Index. By contrast, returns on government bonds of Australia and New Zealand have touched positive territory since the beginning of June, partly on the perception that the policy guidelines of their central banks are clearly stated.