Markets

Key 10-Year JGB Yield Hits 10-Year High of 0.890 Pct

Yomiuri Shimbun file photo
The Bank of Japan building

Jiji Press

14:35 JST, October 30, 2023

Tokyo (Jiji Press)—Japan’s benchmark long-term interest rate, measured by the yield on the most recent issue of 10-year Japanese government bonds, rose to 0.890 pct in Tokyo trading Monday, its highest level since July 3, 2013.

The yield on the newest 372nd 10-year JGB issue was 0.020 percentage point higher than that of late Friday.

Investors actively sold JGBs on speculation that the Bank of Japan may decide to tweak its ultraeasy monetary policy again during its two-day Policy Board meeting from Monday to allow long-term interest rates to rise to a greater extent.

The benchmark yield has been on an upward trend since the BOJ decided to effectively allow 10-year JGB yields to rise to 1 pct, up from its previous cap of around 0.5 pct, at its July policymaking meeting.