Key 10-Year JGB Yield Hits Another 17-Year High

Tokyo, Dec. 2 (Jiji Press)--The key yield on 10-year Japanese government bonds hit a 17-year high for the second straight day on Tuesday, amid growing speculation about a possible interest rate hike by the Bank of Japan later this month.

Bond selling continued after BOJ Governor Kazuo Ueda said Monday that the central bank would make an "appropriate decision" on whether to raise rates at its Dec. 18-19 policy-setting meeting.

The 10-year JGB yield temporarily rose as high as 1.880 pct, a level unseen since June 2008. Bond yields rise when bond prices fall.

Later on Tuesday, the yield fell back after the Finance Ministry's monthly 10-year JGB auction attracted solid demand, heartening market participants.

"There was decent demand thanks to the higher yield," said an official at an asset management firm.

[Copyright The Jiji Press, Ltd.]