Japan Raises 10-Year Govt Bond Coupon to 12-Year High

   Tokyo, July 2 (Jiji Press)--The Japanese Finance Ministry on Tuesday raised the coupon on the July issue of 10-year government bonds by 0.3 percentage point from the previous month to 1.1 pct, its highest level in over 12 years.
   The increase comes as long-term interest rates have been rising amid expectations that the Bank of Japan will tighten monetary policy.
   An increase in bond coupons is expected to push up the government's debt servicing costs and squeeze its finances.
   The government sets aside about 9.7 trillion yen in funding for interest payments on its bonds for fiscal 2024, which ends next March, up 1.2 trillion yen from the previous year.
   The 10-year government bond coupon had declined since the BOJ introduced massive monetary easing in 2013, staying as low as 0.1 pct for six years starting in March 2016. The ministry has been raising the coupon gradually recently in line with rising interest rates.

(2024/07/02-11:58)

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