Japan Key Long-Term Rate Hits 18-Yr High above 1.9 Pct

Tokyo, Dec. 4 (Jiji Press)–The yield on the most recent issue of 10-year Japanese government bonds rose above 1.9 pct to hit the highest level in about 18 and a half years in Tokyo interdealer trading Thursday morning. The key 10-year JGB yield, regarded as Japan’s benchmark long-term interest rate, climbed as high as 1.910 pct. JGBs came under selling on growing speculation that the Bank of Japan will raise interest rates more than once and on concerns that Japan’s fiscal health will deteriorate further due to the aggressive spending policy of Prime Minister Sanae Takaichi’s administration, market sources said. On Monday, BOJ Governor Kazuo Ueda told a news conference that the current interest rates are “basically lower than the neutral rate,” which neither slows down nor accelerates the economy. “Speculation is spreading that the BOJ will raise interest rates this month and next year,” an official of a Japanese securities house said. END [Copyright The Jiji Press, Ltd.]