The Japanese government raised Tuesday the coupon rate for new 10-year government bonds to above 1 percent for the first time in some 12 years, reflecting recent rises in long-term interest rates stemming from the
The last time the rate was set above 1.0 percent was in
The
In March, it scrapped the negative interest rate policy and yield cap program aimed at keeping long-term rates low, returning to the tradition of using short-term interest rates to guide monetary policy.
Since the policy tweaks, yields on the benchmark 10-year Japanese government bond have been rising.
Although higher coupon rates on the key 10-year index are likely to benefit investors that trade government bonds, it heightens debt-servicing costs for heavily indebted
It also fuels concerns about higher borrowing costs and housing loans as interest rates rise.
==Kyodo
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