The yield that Japan pays for a 10-year loan reached 3% on Tuesday, its most expensive rate since September 1996.
The government’s borrowing cost has increased 2,900% in less than five years.
Originating a loan of the same duration in early 2022 cost the sovereign just 0.1%.
Japanese government bonds (JGBs) set multi-decade records across their yield curve. The country is paying a 1.81% yield to borrow for two years, 2.26% for five years, 3.8% for 20 years, and 4.18% for 30 years.
Only 40-year JGBs are below a multi-decade record, albeit only slightly: 4.28%. That duration set its recent record at 4.4% in May.
As the government pays up to bond investors, otherwise hesitant buyers are happy to continue attending auctions. Tuesday’s 10-year JGB auction attracted more than three bids per bond, keeping the rate of bidding in-line with the annual average.
...read more at protos.com
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I had a mortgage at 8.1% once. 3% would have saved me 285% of costs. (81.5% over 10 year)
285% of the costs? So you’d still be getting paid? Hahaha, I don’t get it. Or are you saying Japan’s interest rate is gonna go up to 8.1%? ~lol
What I meant is it was 285% more expensive than what Japan is paying so they should stfu.