Japan's 10-year government bond interest rate rises 2.93%... Bond values ​​at lowest in 30 years

Bond selling intensifies amid expectations of Japan's benchmark interest rate hike in September

(Tokyo = Yonhap News) Correspondent Doyeon Lee = The 10-year government bond interest rate, an indicator of Japan's long-term interest rate, rose to 2.93% at one point on the 17th, causing the bond value to fall to the lowest level in 30 years.

According to the Nippon Keizai Shimbun (Nikkei), the yield on 10-year government bonds rose to 2.93% in the Japanese bond market this morning.

This is the highest level since September 1996.

Nikkei analyzed that since the United States and Japan intervened in the foreign exchange market by purchasing the yen at the end of last month, the bond selling trend is becoming stronger and the buying trend is weakening as speculation spread that the Bank of Japan will raise the benchmark interest rate early.

The United States is said to be supporting the Bank of Japan's early interest rate hike, with reports that the U.S. government is jointly intervening in the foreign exchange market with Japan and has made the Bank of Japan's September interest rate hike a prerequisite for exchange rate intervention.

In addition, according to the main opinions of last month's financial policy decision meeting released by the Bank of Japan on the 10th, the 'hawkish' position was evaluated to be prominent among committee members, with opinions such as "It may be faster than the market expects" and "It cannot be said that 'the risk of waiting' is small, and there is a need to speed up the adjustment of the level of monetary easing."