10-Year JGB Yield Hits New 29-Year High of 2.8 Pct

Tokyo, May 18 (Jiji Press)–The yield on the latest issue of 10-year Japanese government bonds, the benchmark long-term interest rate in the country, briefly climbed to 2.8 pct in Tokyo trading on Monday, its highest level in 29 years, amid inflation concerns and worries about deteriorating public finances in Japan. Inflation concerns stemming from higher oil prices have sent U.S. Treasury yields rising, intensifying upward pressure on long-term interest rates globally. Monday’s announcement by Japanese Prime Minister Sanae Takaichi that her government is considering compiling a supplementary budget led to speculation that deficit-covering bonds will be issued, putting additional upward pressure on JGB yields. “No investors actively buy bonds, and long-term interest rates will continue to rise,” an official at a foreign securities house in Japan said. In Tokyo foreign exchange trading, the dollar temporarily rose above 159 yen, its highest level since April 30, when Japanese authorities intervened to support the yen against the dollar. As of 5 p.m., the dollar was at 158.90-91 yen, up from 158.44-45 yen at the same time on Friday. In stock trading in Tokyo, the country’s benchmark Nikkei 225 index briefly lost over 1,000 points before closing at 60,815.95, down 593.34 points, or 0.96 pct, from Friday’s closing. END [Copyright The Jiji Press, Ltd.]