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The Japanese 10-year government bond yield has dropped to -0.25% for the first time since July 2016 amid a global debt rally.

Notably, the yield has slipped well below the -0.2% mark perceived by markets as the Bank of Japan’s (BOJ) line in the sand.

The central bank has the option of reducing its bond purchases to put a floor under the yields.

The BOJ is set to buy bonds in the key five-to-10 year zone at its regular operation on Friday.