Key 10-Year JGB Yield Hits 17-Year High of 1.650 Pct

Tokyo, Sept. 22 (Jiji Press)–The yield on the newest 10-year Japanese government bond issue, regarded as the country’s benchmark long-term interest rate, reached 1.650 pct in Tokyo interdealer trading Monday, the highest level since July 2008. The yield on the 379th 10-year JGB issue rose amid speculation that the Bank of Japan may implement an interest rate hike soon, according to market sources. Also on Monday, Japan’s benchmark Nikkei 225 stock average briefly gained over 600 points from Friday’s closing to reach around 45,700, partly aided by buying focused on semiconductor-related issues in light of their U.S. counterparts’ strong performances late last week. With Monday marking the start of the campaign period for a leadership election of the Japanese ruling Liberal Democratic Party to pick the successor for outgoing Prime Minister and LDP President Shigeru Ishiba, an official of a major securities firm said that the Tokyo stock market was also buoyed by “continued anticipation for upcoming domestic policies, such as a possible expansionary fiscal policy.” END [Copyright The Jiji Press, Ltd.]