Key 10-Year JGB Yield Renews 17-Year High

Tokyo, Dec. 3 (Jiji Press)–The yield on the newest issue of 10-year Japanese government bonds, regarded as the country’s benchmark long-term interest rate, reached 1.890 pct in Tokyo interdealer trading Wednesday, the highest level since mid-June 2008. JGBs came under selling pressure as expectations for higher interest rates in the country grew on speculation that the Bank of Japan would continue to raise its policy interest rate even after a widely expected hike at its policy-setting meeting later this month, market sources said. The rise in the yield on the 380th 10-year JGB issue also reflected concerns that Japanese Prime Minister Sanae Takaichi’s large-scale economic measures could worsen the country’s fiscal situation, they said. On the Tokyo Stock Exchange, the Nikkei 225 stock average climbed 561.23 points, or 1.13 pct, from Tuesday to finish at 49,864.68. The benchmark index briefly retook 50,000 on the strength of issues linked to artificial intelligence and semiconductors. But the market struggled with a dearth of fresh trading cues, and nearly 70 pct of issues on the Prime top-tier section closed lower. The broader TOPIX index ended down 6.74 points, or 0.20 pct, at 3,334.32. END [Copyright The Jiji Press, Ltd.]