Economy

(UPDATE1) 10-Year JGB Yield Surges to 0.575 Pct after BOJ Decision

REUTERS
The Bank of Japan building is pictured in Tokyo March 18, 2009.

Jiji Press

13:16 JST, July 28, 2023 (updated at 13:52JST)

Tokyo, July 28 (Jiji Press)—The benchmark 10-year Japanese government bond yield surged to 0.575 pct in interdealer bond trading early Friday afternoon, following the Bank of Japan’s release of its monetary policy decision earlier in the day.

The reading was the highest since September 2014 for the yield on the most recent 10-year JGB issue, regarded as Japan’s benchmark long-term interest rate.

At its two-day monetary policy meeting through Friday, the BOJ decided to operate its yield curve control system flexibly.

Meanwhile, the key Nikkei stock average lost more than 800 points briefly. At 1:15 p.m., the Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section was down 853.61 points, or 2.60 pct, from Thursday at 32,037.55.

In Tokyo currency trading, the dollar repeated wild swings between around ¥138.50 and ¥141.00 following the BOJ decision. At 1 p.m., the greenback stood at ¥139.73-75, down from ¥139.98-98 at 5 p.m. Thursday.