The Yen's Puzzling Surge, Explained (Hint: It's Deflation)

``Yet taking into account inflation-adjusted yields on both sides of the Pacific, 10-year Japanese debt has grown more appealing compared with Treasuries, according to Morgan Stanley and Societe Generale SA. And the banks point to this metric -- the narrowing advantage of the U.S. in terms of real yields -- to help explain why the yen is the best-performing major currency against the dollar this month.''