Japan's Key Long-Term Rate Tops BOJ-Set Limit Again

Tokyo, Feb. 21 (Jiji Press)--Japan's benchmark long-term interest rate topped the Bank of Japan-set upper limit of 0.5 pct for the first time in about a month on Tuesday.

Overseas investors and others are stepping up selling of Japanese government bonds on speculation that the BOJ will soon revise its monetary easing policy, with its governor slated to be changed.

On Tuesday, the benchmark yield on the latest 10-year JGB issue rose as high as 0.505 pct, topping the 0.5 pct mark for the first time since Jan. 18.

In December last year, the Japanese central bank tweaked its yield curve control policy to allow the 10-year yield to move between plus and minus 0.5 pct, against the previous range of between plus and minus 0.25 pct.

Following the BOJ move, speculation grew that the BOJ will take a further step to modify its massive monetary easing policy, including the yield curve control scheme, prompting overseas investors to sell JGBs, market sources said.

[Copyright The Jiji Press, Ltd.]