Key 10-Year JGB Yield Hits 30-Year High of 2.945 Pct

Tokyo, Aug. 18 (Jiji Press)–The yield on the most recent 10-year Japanese government bond issue, a key long-term interest rate, rose to a 30-year high of 2.945 pct temporarily in Tokyo interdealer trading Tuesday. The benchmark yield on the 383rd 10-year JGB issue increased 0.025 percentage point from late Monday. According to Japan Bond Trading Co., a benchmark 10-year JGB yield climbed to such a high level for the first time since October 1996. Inflation concerns grew as crude oil prices rose amid the Middle East turmoil. Upward pressure for interest rates is increasing globally as the yield on 30-year U.S. government bonds hit its highest level in roughly 19 years. In addition, views have spread that the Bank of Japan will raise interest rates early amid concerns about faster-than-expected price increases, while Prime Minister Sanae Takaichi’s administration maintains its expansionary fiscal policy. Against these backgrounds, market players continued to sell JGBs, sources said. “We see no specific factors to actively buy government bonds,” a Japanese securities house official said. “A long-term rate rise to the 3 pct range is coming into sight.” The yield on the newest 10-year JGB issue has risen nearly 1 point from about 2 pct at the end of last year. END [Copyright The Jiji Press, Ltd.]