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Japan bond yields jump following Fed comments

Japan bond yields jump following Fed comments

Yields on 10-year Japanese government bonds have briefly topped 1 percent for the first time in a year, unnerving some investors at a time when Japan is aggressively trying to lower interest rates.
The spike in long-term debt early Thursday followed overnight news that some officials of the U.S. Federal Reserve are willing to scale back the American stimulus effort as soon as June if the economy perks up.
Like the Fed, the Bank of Japan is buying massive amounts of government bonds, seeking to keep interest rates low to encourage people and businesses to borrow and spend more.
Keeping long-term rates low is a priority for Japan because its government debt amounts to over twice the size of the economy. Higher rates would vastly increase the government's repayment burden.


Updated : 2021-05-19 05:01 GMT+08:00