(Update) 10-Year JGB Yield Hits Fresh 29-Year High of 2.73 Pct

(The third paragraph from the bottom should have read, “…to over 1,000 points,” instead of as sent. A substitute story follows.) (Update) 10-Year JGB Yield Hits Fresh 29-Year High of 2.73 Pct Tokyo, May 15 (Jiji Press)–The yield on the most recent issue of 10-year Japanese government bonds hit a fresh 29-year high of 2.73 pct in interdealer bond trading in Tokyo early Friday afternoon. The key Japanese long-term interest rate rose to the highest level since May 1997, according to Japan Bond Trading Co. JGBs were hit by selling following a rise in U.S. long-term interest rates amid inflation concerns linked to rising crude oil prices, market sources said. Another selling factor was renewed worries over fiscal deterioration as the Japanese government has begun to consider a supplementary budget for fiscal 2026 to finance proposed subsidies to cover electricity and gas costs. “Long-term interest rates may rise to 3 pct this year due to caution over fiscal expansion and other factors,” an asset management company official said. Meanwhile, the Nikkei 225 stock average finished the morning at 61,849.81, down 804.24 points, or 1.28 pct, from Thursday’s closing. Its loss later expanded to over 1,000 points. In Tokyo currency trading, the dollar rose above 158.50 yen on higher U.S. interest rates, hitting the highest level since April 30, when Japanese authorities intervened in the market to prop up the yen by selling dollars. The greenback later moved narrowly around the level. It stood at 158.47-49 yen at 1 p.m., up from 157.91-92 yen at 5 p.m. Thursday. END [Copyright The Jiji Press, Ltd.]