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2026-10-06 13:24:17
[Japan's 10-year government bond coupon rate breaks 3% for the first time in 30 years as global debt concerns push up yields] (1) As global concerns about government debt intensify, yields in the secondary market for Japanese government bonds continue to climb, with the benchmark coupon rate breaking 3% for the first time in 30 years. (2) Japan's Ministry of Finance announced on Tuesday that it will set the coupon rate for the 10-year Japanese government bonds issued this month at 3.1%, the highest since August 1996. The Ministry of Finance adjusts the coupon rate for 10-year government bonds every three months in principle: 2.7% from July to September and 2.4% from April to June. The coupon rate is usually set close to the current market level because if it is significantly lower than the secondary market 10-year yield, it may lead to the auction price being significantly lower than the face value. (3) In the 10-year Japanese government bond auction held on Tuesday, the bid-to-cover ratio rose to 3.76 times, higher than the previous 3.29 times, and the highest winning bid price also reached the highest level in 30 years.
