U.S. inflation prompts 1st rise in Japan gov't bond coupon in 7 years

Politics Economy

The Japanese government on Tuesday raised the coupon rate for its new 10-year sovereign bonds to 0.2 percent from 0.1 percent, the first increase in seven years made to match higher yields following rapid inflation in the United States. The coupon rate hike will add upward pressure to borrowing costs for households and companies, with the rate currently kept near zero on the back of the Bank of Japan's ultraeasy monetary policy. The coupon rate is the rate of interest bondholders can receive in a year decided by the ministry at issuance, taking into account yields that move inversely to bond p...

Kyodo News

Kyodo News