Bond Market during deflation

[Kidlicious]

Appearantly there are some economists thinking about this . Here's something on JGB yield.

Some analysts say that in spite of growing anxiety about global deflation, 0.5 per cent could turn out to be a psychological barrier that 10-year yields struggle to cross. But others argue that as there is no fundamental reason for yields to stop falling the decline will continue regardless.

The yield is at .52% today though. So it probably will go below .5%. Bonds fell in Europe and the US today.