10-Year JGB Yield Rises to Roughly 30-Year High

Tokyo, July 9 (Jiji Press)–The yield on the most recent issue of 10-year Japanese government bonds, regarded as the country’s benchmark long-term interest rate, briefly rose to a roughly 30-year high of 2.9 pct in Tokyo interdealer trading Thursday. According to Japan Bond Trading Co., the 10-year JGB yield hit its highest level since November 1996. In late trading, the key yield stood at 2.875 pct, up 0.01 percentage point from Wednesday. It surged 0.2 point in less than a week from between 2.65 pct and 2.7 pct late last month. JGB yields followed U.S. Treasury yields higher as inflation concerns were fueled by a rise in crude oil prices after the United States conducted additional attacks on Iran in retaliation for Iran’s attacks on merchant vessels. The JGB market was also under pressure from Japanese Prime Minister Sanae Takaichi’s expansionary fiscal policy and a possible delay in interest rate hikes by the Bank of Japan. “The long-term yield may reach the 3 pct threshold as early as next week, as few investors are willing to purchase bonds now,” said an official of a domestic securities firm. On the Tokyo Stock Exchange, the benchmark Nikkei 225 stock average rebounded for the first time in four trading days. The index of 225 issues listed on the Tokyo Stock Exchange’s top-tier Prime section closed at 67,743.85, up 924.80 points, or 1.38 pct, from Wednesday. Artificial intelligence-related stocks attracted buying interest after recent losses, while air transporters and rubber product makers fell amid rising crude oil prices and interest rates. Automakers were also sold. More than half of the Prime-listed stocks lost ground. END [Copyright The Jiji Press, Ltd.]