Anyone who buys a 5-year note yielding 1.5% is f*cking insane. I don't care what currency it's in. If you want to diversify your currency holdings (or bet on a currency, for that matter) then just buy the currency; there's no need to commit to 5 years at a paltry 1.5%. I would put money in a bank at 0% or under my mattress before I'd commit to a 5-year note at 1.5%. If rates uptick just a little that bond will get whacked – do the math. And if you're holding it until maturity, well… you're just getting 1.5% per year. So, the Nips are crazy. What else is new? Of course we've got our share of crazies too… we've got people willing to hold 10-year notes yielding 5.5% or thereabouts, which is barely above inflation. Meanwhile, you can get a CD that yields almost the same rate with almost zero duration risk. Go figure. The world's gone mad. But at least it's entertaining.
…..Or open an Emigrant Direct savings account that yields about 5.05% for short term cash reserves. (ok slightly less). Screw the cd.
