Tokyo, Sept. 24 (Jiji Press)–The benchmark 10-year Japanese government bond yield, a key long-term interest rate, climbed to a fresh 30-year high of 3.075 pct on Thursday. According to Japan Bond Trading Co., the yield on the latest 383rd issue of 10-year JGBs hit the highest level for a benchmark yield since August 1996. The rate climbed after the U.S. long-term Treasury yield rose Wednesday, as a senior Federal Reserve official signaled openness to further rate hikes due to concerns about inflation, prompting increased bond selling in Tokyo as well. “(JGBs) were sold on concerns about the expansionary fiscal policy of the administration of (Japanese Prime Minister Sanae) Takaichi, in addition to renewed expectations that delays in the Bank of Japan’s rate hikes could force it to raise rates sharply in the future,” an official at an asset management firm said. In Tokyo currency trading Thursday, the dollar strengthened to above 158 yen. The greenback was bought against the yen amid speculation that the U.S. Federal Reserve would soon raise interest rates again, with traders focusing on the Japan-U.S. interest rate differential. At 5 p.m., the dollar stood at 158.20-22 yen, up from 157.49-49 at the same time Friday. The Tokyo market was closed from Monday to Wednesday for national holidays. END [Copyright The Jiji Press, Ltd.]
