Coupon on JGBs for Individuals Raised to 0.33 Pct


Tokyo, Jan. 6 (Jiji Press)--Japan's Finance Ministry on Friday set the initial coupon for 10-year floating-rate Japanese government bonds to be issued in February for sale to individual investors at 0.33 pct, up from 0.17 pct for the January issue.

The rate is the highest since August 2015. The hike reflects higher long-term interest rates after the Bank of Japan modified its massive monetary easing program last month.

The application period for the new bonds will be from Tuesday to Jan. 31.

The ministry issues JGBs for individuals every month. The coupon for 10-year floating-rate bonds is reviewed semiannually. The initial rate is determined by multiplying by 0.66 the base interest rate, which is calculated based on the results of the auction conducted on the previous business day for 10-year JGBs issued for financial institutions. The latest base interest rate was set at 0.5 pct after Thursday's auction for financial institutions.

On Thursday, the ministry set the coupon rate of 10-year JGBs for financial institutions at 0.5 pct, the highest level since December 2014. The day's auction produced a highest accepted yield of 0.5 pct.

[Copyright The Jiji Press, Ltd.]

Jiji Press