Key 10-year JGB yield falls to record low 0.050%


Japan’s benchmark long-term interest rate, measured by the yield on the most recent issue of 10-year Japanese government bonds, fell to a record low of 0.050 percent in interdealer trading on Monday morning.

The reading for the yield on the 0.3 percent 341st issue of 10-year JGBs was down 0.045 percentage point from late Friday.

JGBs have been bought actively following the Bank of Japan’s surprise decision Friday to introduce a negative interest rate policy.

The yield on the 1.0 percent 155th issue of 20-year JGBs fell to 0.745 percent, the lowest level since June 2003 for a most recent 20-year issue, while that on the 1.4 percent 49th issue of 30-year JGBs hit 0.995 percent, slipping below 1.0 percent for the first time since April 5, 2013.

Tokyo stocks also continued to attract buying.

On the Tokyo Stock Exchange, the benchmark 225-issue Nikkei average, which jumped 476.85 points on Friday, rose to as high as 17,821.37 at 9:17 a.m., up 303.07 points, or 1.73 percent.