Japan lifts coupon rate for 10-yr gov’t bond to 0.5%, highest in 8 yrs

The Japanese government on Thursday more than doubled the coupon rate for new 10-year government bonds to 0.5 percent, the highest in more than eight years, reflecting a rise in long-term interest rates following the Bank of Japan’s monetary policy tweak.

The Finance Ministry hiked the coupon rate -- the interest rate stated on bonds at their issuance -- for benchmark bonds issued in January from 0.2 percent to the highest level since December 2014, marking the first increase since April last year.

The yields on Japan’s benchmark 10-year government bonds have risen to around 0.3 to 0.4 percent...