TOKYO, Dec 08 (News On Japan) –
Long-term interest rates continued their rapid ascent on December 8th, reaching their highest level in 18 years and six months in the latest sign of tightening financial conditions.
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In the bond market, the yield on the benchmark 10-year Japanese government bond briefly climbed to 1.965 percent, marking its strongest level since June 2007 and bringing it close to the symbolic 2 percent threshold last seen in 2006.
Investors have sold off government bonds on growing speculation that the Bank of Japan may continue raising rates, while concerns over fiscal deterioration have intensified under the aggressive fiscal policies of the Takaichi administration.
Rising long-term rates are expected to push up fixed mortgage rates and increase borrowing costs for companies.
Bank of Japan Governor Ueda is scheduled to speak at an online event on December 9th, and markets are watching closely for any comments that could influence the interest rate outlook.
Source: TBS NEWS
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: newsonjapan.com
