Yen Bond

In general terms, any bond issue denominated in Japanese yen. International bankers using the term are usually referring to yen-denominated bonds issued or held outside Japan.

Any bond denominated in yen, usually issued in the Japanese money market. There are several types of yen bonds. If issued in the Euromarket it is called a Euroyen bond. Yen-denominated bonds issued in Japan to non-Japanese investors are priced by the four major Japanese securities firms, and are known as Samurai Bonds. (Contrast with foreign currency Shogun bonds issued in Japan to both Japanese and foreign investors.) A 1984 accord between the U.S. Treasury Department and the Japanese Ministry of Finance was instrumental in opening up the yen market to non-Japanese issuers. See also Eurobond.