> But for investors choosing between a basket of interest bearing sovereigns, they will choose the bond that has the largest risk adjusted rate of return 101% o

> But for investors choosing between a basket of interest bearing sovereigns, they will choose the bond that has the largest risk adjusted rate of return 101% of the time. The percentage of bonds bought by this type of investor is so small that the ECB, BoE, BoJ, and FED aren't even giving them consideration. The only reason anyone in their right mind would buy a 10-year treasury from the BoJ at negative interest rates is if they feel like the BoJ will eventually buy back the worthless bond from them for even more money than they bought it for originally. Traditionally, this has been a pretty safe bet - because the entire economy of Japan is dependent upon the BoJ paying people endlessly more money for the same worthless garbage...