Tokyo, October 06 (QNA) - Japan's Finance Ministry on Tuesday raised the coupon rate for a new 10-year Japanese government bond issue to 3.1%, the highest level in about 30 years, reflecting a recent rise in long-term interest rates.
The coupon rate, the interest rate stated on bonds at their issuance, rose from 2.7% set in the previous auction in September, according to Japan's Kyodo News Agency.
The increase comes as rising oil prices have fueled concern about inflation, while upward pressure on long-term US interest rates has also spilled over to Japan.
By bringing the coupon rate closer to prevailing market rates, the government can make the bonds more attractive to investors and facilitate the necessary financing through bond issuance. (QNA)