Japan bond offering negligible yield gains investor attention - Business Insider

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A Japanese government organization was massively oversubscribed for a bond yielding 0.0000148% as investors scramble for safe assets

worth 30 billion yen , offered by Japan Student Services Organization , is priced at 100.002 yen with a coupon rate of 0.001% — essentially offering a near-zero yield.

Orders for the bond were two and a half times the amount that was being sold, Bloomberg said, citing sources. JASSO's debt deal history is noteworthy. Aimed at projects with positive social outcomes, its social bonds are a type of security instrument where the proceeds are exclusively meant to raise funds for social projects.

JASSO, an independent administrative institution that offers student loans, has seen rising demand for its AA+ rated securities by investors keen to boost their holdings in Environmental, Social, and Governance assets. Its buyers include banks, pension funds, foreign investors, and Shinkin banks , Bloomberg reported, citing sources. The organization has history in pricing extremely low-yield debt. It sold Japan's first negative-yielding agency bond in 2019 when it sold a note priced at 100.003 yen with a coupon rate of 0.001%.Japan is among the first countries to relax lockdown restrictions.

 

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