"Japanese Rates Are Looking Unsettled"—Meritz Securities Lists Two ETNs Tracking 30-Year Japanese Government Bonds

[Financial News] Meritz Securities has listed an exchange-traded note (ETN) tracking 30-year Japanese government bonds. The move appears to reflect the recent rise in Japanese government bond yields, with the company introducing products that track them.
According to the financial investment industry on the 4th, Meritz Securities will list the Meritz 30-Year Japanese Government Bond ETN (Hedged) and the Meritz 3X Leveraged 30-Year Japanese Government Bond ETN (Hedged) on the Korea Exchange (KRX). Both products track total-return (TR) underlying indexes calculated by Korea Asset Pricing.
Meritz Securities introduced four ETNs tracking 10-year Japanese government bonds last year. This time, it expanded the investment target to 30-year bonds.
The key feature of these products is that they are designed with currency hedging, allowing investors to focus more closely on movements in Japan’s ultra-long-term interest rates.
The Meritz 30-Year Japanese Government Bond ETN (Hedged) uses currency hedging to reduce the impact of fluctuations in the yen’s value on investment returns. This allows investors to focus more on changes in Japanese government bond yields and prices themselves than on movements in the won-yen exchange rate.
A Meritz Securities official said, "The key feature of these products is that their currency-hedged structure reduces the impact of yen fluctuations and allows investors to focus more closely on movements in Japanese long-term interest rates themselves."
Meanwhile, the yield on 30-year Japanese government bonds briefly rose to 4.207% on the 2nd, reaching its highest level in 16 months.

[email protected] Lim Sang-hyuk Reporter