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Coupon rate for 10-yr Japan gov't bonds lowered to 0.9%.

TOKYO, May 8 Kyodo

The Finance Ministry on Tuesday lowered the coupon rate for 10-year government bonds to 0.9 percent from the previous month's 1.0 percent, citing recent slides in long-term borrowing costs in the debt market.

In an auction held the same day, the No. 322 issue of bonds attracted 7,794.4 billion yen in bids, of which the ministry accepted 2,086.8 billion yen. In April, bids totaled 5,724.5 billion yen and the ministry accepted 2,095.5 billion yen worth.

The bonds will be issued on Thursday and mature March 20, 2022.

The coupon rate, or the interest rate stated on a bond when it is issued, declined on lower long-term borrowing costs, with investors increasingly purchasing Japanese government debt and other relatively safer assets amid uncertainty over the sovereign debt crisis in Europe. The move has pushed bond prices higher and yields lower.
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Publication:Japan Weekly Monitor
Date:May 14, 2012
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