Tokyo, Dec. 8 (Jiji Press)–The yield on the latest issue of 10-year Japanese government bonds, regarded as the country’s benchmark long-term interest rate, rose to 1.970 pct in Tokyo interdealer trading Monday, hitting the highest level since June 2007. JGBs were under pressure amid expectations that the Bank of Japan will raise interest rates at its policymaking meeting next week. Market players think that the administration of Prime Minister Sanae Takaichi will not oppose an interest rate increase. BOJ Governor Kazuo Ueda said in a speech Dec. 1 that when members of the central bank’s Policy Board meet Dec. 18-19, they will “consider the pros and cons of raising the policy interest rate and make decisions as appropriate.” Finance Minister Satsuki Katayama said at a press conference Friday that her communication with Ueda has been “very good.” Concern that Takaichi’s proactive fiscal policy will force the government to issue more bonds is also driving JGB yields higher. END [Copyright The Jiji Press, Ltd.]
Key JGB Yield Reaches New 18-Year High of 1.970 Pct
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