Bloomberg reports that Berkshire Hathaway, the corporation owned by Warren Buffett, has cautioned investors against selling yen-denominated bonds. These bonds have been one of the largest sources of foreign debt in the Japanese currency in recent years. A preliminary price of 70 basis points has been set for a 3-year bond, compared to intermediate swaps. Several tranches are being offered for sale, with a preliminary forecast of 125 basis points for 30-year maturity.
The deal may take place on April 14th. During the approval process for the new governor of the Bank of Japan, Kadsuo Ueda, a statement was made that the country needs to ease its monetary policy and pay more attention to adjusting its yield curve control program. As a result, traders are concerned about possible adjustments to the yield of Japan's 10-year bonds, which has risen.
Berkshire Hathaway's last sale of yen-denominated bonds was in December, when it sold ¥115 billion ($867 million) worth of bonds.