Japan lifts coupon rate on 10-yr gov’t bonds to decade-high 0.8%

The Finance Ministry on Tuesday raised its coupon rate on 10-year Japanese government bonds to 0.8 percent, a 10-year high, reflecting rising yields since the Bank of Japan’s recent move to allow greater flexibility.

The coupon rate -- the interest rate stated on bonds when issued -- is double the previous 0.4 percent for issuance until September and marks the highest level since October 2013.

The coupon rate was last raised in January. By bringing it closer to market rates, the government can secure necessary funds via bond issuance more easily.

The BOJ loosened its grip in July, allowing the...