Economy

Japan Long-Term Rate Hits 1.075 Pct, Highest since Dec. 2011

REUTERS/Issei Kato/File Photo
The Bank of Japan is seen in Tokyo in September 20, 2023.

Jiji Press

15:30 JST, May 29, 2024

Tokyo (Jiji Press)—The yield on the newest issue of 10-year Japanese government bonds, regarded as the key long-term interest rate in Japan, jumped to 1.075 pct Wednesday, the highest level since December 2011.

The yield on the 0.8 pct 374th 10-year JGB issue rose for the fourth straight trading day, up 0.04 percentage point from Tuesday. The climb reflected JGB sales triggered by a surge in U.S. long-term interest rates Tuesday.

Upward pressure on the Japanese rate is increasing due to rising expectations that the Bank of Japan will reduce its JGB purchases or raise its policy rate soon.

“Unless the BOJ clarifies the pace of future reductions in its JGB purchases, (market players) cannot buy the dip even if they want to,” an official at a Japanese asset management firm said.

Meanwhile, the dollar rose versus the yen in Tokyo trading Wednesday, aided by higher U.S. interest rates.

At 3 p.m., the greenback stood at ¥157.23-23 , up from ¥156.88-88 at 5 p.m. Tuesday.