In Japan, the six-month yen Libor rate -- the price at which banks theoretically borrow from each each other -- is minus five basis points, whereas the 20-year yen swap rate is positive 11 basis points, offering a pick up of 16 basis points.

Contrast this with the U.S., where six-month dollar Libor is about 2.03% and the 20-year swap rate is being quoted at just 1.59%, around 40 basis points lower.

The flattening of the U.S. curve may end up sending funds to a number of other markets that offer a steeper alternative -- just one of the ways traders are looking to get creative as the amount of negative-yielding debt swells to new records.

This article was provided by Bloomberg News.

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