Tokyo, Oct. 6 (Jiji Press)–The Finance Ministry on Tuesday set the coupon rate for the October issue of 10-year Japanese government bonds at 3.1 pct, the highest level in 30 years and two months, up from 2.7 pct for the September issue. The ministry made the decision as long-term interest rates stay high on the market, reflecting persisting concerns about inflation stemming from the Middle East turmoil and about Prime Minister Sanae Takaichi’s expansionary fiscal policy stance. The ministry revises the 10-year JGB coupon rate every three months in principle. In interdealer trading Tuesday, the benchmark 10-year JGB yield, a key long-term interest rate, climbed to 3.115 pct, matching the 30-year high scored in late September. In its budget request for fiscal 2027, the ministry sought a record amount of funds to service debt. Higher interest payments resulting from rising government bond yields may put a strain on government finances. END [Copyright The Jiji Press, Ltd.]
