Long-term interest rates temporarily reach 1.5% range; government bond yields rise to 16-year high (Mainichi Shimbun)

In the Tokyo bond market on the 6th, the yield of the newly issued 10-year government bonds, which is an indicator of long-term interest rates, rose (the price of government bonds fell), temporarily in the 1.5% range. It has reached the highest level in about 16 years since June 2009. Observations that the Bank of Japan will move to raise interest rates early has spread, and the pressure to sell government bonds is increasing.

While the increase in long-term interest rates has the effect of increasing interest rates on time deposits and yields on life insurance, the burden on interest payment on mortgage borrowers and companies that receive loans will increase. [ Hayato Narusawa]