BOJ Move Backfires as 0.001% Deposits Lure Cash of Fund Managers
- As deposits surge 5.9%, 11 money-market funds stop taking cash
- Investment to savings exact opposite of Abenomics goal: Monex
The Bank of Japan building in Tokyo.
Photographer: Franck Robichon/EPAThis article is for subscribers only.
It’s a strange world when bank accounts earning almost no interest are one of the most attractive investments around.
Despite the Bank of Japan’s efforts to spur risk-taking with negative rates, cash is flowing out of funds targeting bills and commercial paper in favor of 0.001 percent savings plans, according to Deutsche Bank AG and Monex Group Inc. Eleven money-market funds stopped accepting new investment in February as banker association data showed deposits climbed almost 6 percent.