TOKYO -- Long-term yields in the Japanese bond market marched deeper into negative territory Monday, almost daring the Bank of Japan to make good on its pledge to keep them around zero.
Newly issued 10-year Japanese government bonds, the benchmark for long rates, crept under minus 0.06% -- down roughly half a basis point since Friday. The market "is testing the lower limits" of the BOJ's target level, said Katsutoshi Inadome of Mitsubishi UFJ Morgan Stanley Securities.