Japan's Long-term Interest Rates Rise to 1.075%, Highest in 12 Years

May 30, 2024 | News On Japan

TOKYO - Long-term interest rates rose, with the yield on newly issued 10-year government bonds in the Tokyo bond market reaching 1.075% at one point, 0.04% higher than the previous day's closing rate. This marks the highest level in about 12 years.

The yield on 10-year government bonds, a key indicator of long-term interest rates, serves as a benchmark for fixed mortgage rates and corporate lending rates. Thus, a rise in yield can impact households and corporate activities.

The rise in yields was influenced by remarks from officials at the Federal Reserve in the United States, which led to speculation that the start of rate cuts in the US might be delayed. This, in turn, drove up the yields on long-term US government bonds. Additionally, speculation that the Bank of Japan might reduce its bond-buying in a move towards financial normalization led to selling pressure on Japanese government bonds.

As a result, the yield on 10-year government bonds temporarily climbed to 1.075%, the highest level in about 12 years.

Masahiro Ichikawa, Chief Market Strategist at Sumitomo Mitsui DS Asset Management, analyzed, 'The behavior of the Bank of Japan will determine the actions of participants in the bond market, who are cautiously observing the situation to find a balance. There are no decisive factors expected until the monetary policy meeting next month, but the trend for long-term interest rates is likely to continue rising gradually.'

Source: ANN

Osaka’s Minami Rebuilt Into Tourist Hub

Osaka’s Minami district, now entering another period of major change with the planned opening of the Naniwasuji Line, the redevelopment of Midosuji and improvements around Nankai Namba Station, has transformed from an area once described as "scary" and "dirty" into one of Japan’s leading tourist destinations.

Crowds Join First Pull of 10-Ton Gion Festival Float

A 10-ton hoko float was pulled through central Kyoto on July 12 in a trial run ahead of the Yamahoko Junko procession during the Gion Festival's early parade.

Young Doctors Flock to Cosmetic Medicine

A growing number of young doctors in Japan are moving directly into cosmetic medicine after obtaining a medical license and completing their initial clinical training, raising concern that the trend may be worsening staff shortages in insurance-covered medical care.

Typhoon No. 9 Travel Disruptions Continue on Some Okinawa Routes

Transport disruption from Typhoon No. 9 (Bavi) continued on July 12, with airlines warning that some flights serving Okinawa’s outlying islands could still face delays, cancellations or conditional operations even after the storm moved away from the prefecture.

JAXA Successfully Lands Reusable Rocket Test Vehicle

JAXA successfully landed a small experimental vehicle for a reusable rocket on July 11, marking a step toward technology that could increase the frequency of space launches while helping reduce costs.

MEDIA CHANNELS

MORE Business NEWS

This Is the Pension After 40 Years at a Company

A 65-year-old man who spent 40 years working for a company was shocked to learn that his pension would amount to 168,000 yen a month, raising fresh concern over whether retirees in Japan can live on public pension payments alone.

Small Supermarkets Surge as Shoppers Seek Lower Prices

Small supermarkets offering lower prices than convenience stores and closer access than full-size supermarkets are expanding rapidly across the Tokyo metropolitan area, as retailers race to meet demand from older consumers, single-person households and shoppers under pressure from rising prices.

One of Japan’s Largest Stag Beetles Goes on Sale in Kyoto

A welfare facility in Fukuchiyama, Kyoto Prefecture, has begun preparations to sell about 220 giant stag beetles, one of Japan’s largest species, from July 13.

Docomo Bank to Begin Services in August, Aiming for 1,500 Branches

NTT Docomo will begin offering banking services under the new "Docomo Bank" brand in August, with plans to build a network of more than 1,500 locations by fiscal 2030, far exceeding the branch networks of Japan's major banks.

Nikkei Extends Rally With 813-Point Gain as AI Stocks Lead Market Higher

Japanese stocks rose for a second straight session on Friday, July 10, with the Nikkei Stock Average climbing 813.88 points to close at 68,557.73 after strong gains in U.S. technology and semiconductor stocks fueled renewed buying of AI-related shares.