10-Year JGB Yield Hits Fresh 29-Yr High of 2.865 Pct

Tokyo, July 8 (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 climbed to a new 29-year high of 2.865 pct in Tokyo interdealer trading Wednesday. JGBs faced selling pressure due to renewed uncertainty over crude oil supply amid turmoil in the Middle East. The 10-year JGB yield hit its highest level since May 1997, according to Japan Bond Trading Co. The U.S. Central Command forces posted on social media Tuesday that they “have begun launching a series of powerful strikes against Iran” following Iranian attacks on vessels in the Strait of Hormuz. The U.S. Treasury Department said the same day that it would revoke a sanctions waiver that had temporarily allowed the purchases of Iranian oil. U.S. long-term interest rates climbed on inflation concerns after crude oil futures shot up due to supply uncertainty, and Japanese bond yields followed suit. Worries about Japan’s fiscal health and concerns that the Bank of Japan may be slow to hike interest rates also spurred JGB selling. END [Copyright The Jiji Press, Ltd.]