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2026-02-16 14:37:19
Goldman Sachs: Japanese Government Bonds Have Erased All "Country Risk Premium" Goldman Sachs analysts believe that the Japanese government bond yield curve no longer contains any "country risk premium." The report points out that 10- to 30-year government bonds have returned to fair value, and the 2- to 10-year portion is only 10-15 basis points steeper than fair value. Analysts say that the recent elimination of uncertainty surrounding the House of Representatives election may have been enough to eliminate some of the long-term risk premium, but last week's price action seems to have exceeded the influence of this single factor, with the market more inclined to believe that the government and central bank have the ability to address fiscal tail risks.
