On September 22, the yield on Japan's 10-year government bond reached its highest level in more than 17 years.
According to the Nihon Keizai Shimbun (Nikkei), the 10-year government bond yield rose to 1.65% in the Tokyo bond market on this day, marking the highest level since July 2008.
The Nikkei interpreted this as a result of growing bond selling amid expectations that the Bank of Japan (BOJ) will move to raise its benchmark interest rate further. Additionally, some analysts noted that speculative selling of government bonds was also observed, especially given the low trading volume.
Previously, at the monetary policy meeting held on September 19, the Bank of Japan kept its short-term policy rate, the benchmark interest rate, unchanged for the fifth consecutive time. However, two members of the policy board argued for a 0.25 percentage point increase.
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