Here are the yields on Japanese Bonds http://www.bloomberg.com/markets/rates/japan.html http://www.bloomberg.com/markets/rates/japan.html 2.2 percent on a 30

Here are the yields on Japanese Bonds http://www.bloomberg.com/markets/rates/japan.html http://www.bloomberg.com/markets/rates/japan.html 2.2 percent on a 30 year bond, which means that the maximum upside on the principal is roughly 20 percent. So, a 10K investment could theoretically rise to 12K if the 30 year yield drops to 0, which it won't. If it rises to something sensible, like 6 or 8 percent, you take a bath. People seem to think of bonds like they do savings accounts, but they aren't. There's a huge principal risk. And government debt always seems "off" to me. For instance, Japanese debt is largely held by the Japanese themselves, for patriotic reasons sometimes. This distorts the market.