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German And French JPY-Hedged Yields Increasingly Attractive

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A quick look at 3-month JPY-hedged 10Y yields (ie from the perspective of Japanese investors) vs the 0.25% on offer for JGBs.

  • Foreign instruments are becoming increasingly attractive from this perspective.
  • The US nominal move vs JGBs is getting much of the attention but the hedged yield (1.43%) is not much higher than it was a year ago.
  • However German (1.18%) and French (1.61%) 10Y hedged yields are the highest since 2014 and up 100+bp since a year ago.

Source: MNI, BBG

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