Tokyo, Sept. 25 (Jiji Press)–The benchmark 10-year Japanese government bond yield, a key long-term interest rate, briefly climbed to a new 30-year high of 3.115 pct on Friday. The yield on the latest 383rd issue of 10-year JGBs hit the highest level for a benchmark yield since August 1996, according to Japan Bond Trading Co. JGB selling accelerated due to higher U.S. long-term Treasury yields, as inflation concerns were fanned by rising crude oil prices following news reports that pro-Iran Houthi rebels in Yemen had fired missiles toward Saudi Arabia. The benchmark yield ended at 2.985 pct on Sept. 18 before a string of holidays in Japan, but has risen by more than 0.1 percentage point in the two trading days since the break. The Tokyo market was closed from Monday to Wednesday. Market concerns are growing that delays in further rate hikes by the Bank of Japan could eventually force the central bank to implement a hefty rate hike, after two BOJ policymakers voted against an additional rate increase decided on Sept. 18. Such worries, in addition to concerns about fiscal deterioration stemming from a planned consumption tax rate cut on food, are factors behind the JGB sell-off, an official at an asset management company said. END [Copyright The Jiji Press, Ltd.]
