Long-term interest rate -down to 0.290% August 29, 18:06 approaching record low
The price has risen as the movement to buy JGBs, which are considered relatively safe assets by selling stocks, is concerned about the global economic slowdown. On the 29th, the long-term interest rate in Japan dropped to minus 0.290% on the 29th, approaching a record low of three years ago, because the yield would fall as the price of government bonds rose.
In the bond market on the 29th, as the price of Japanese government bonds increased and prices rose, the yield on 10-year government bonds, which is a typical indicator of long-term interest rates, temporarily dropped to minus 0.290% This is the lowest level in three years and one month since July 2016, when we recorded a record low of minus 0.3%.
The British Prime Minister Johnson decided to close the parliament for about a month, and the possibility of leaving the EU without agreement has increased, and no progress has been made in trade negotiations between the United States and China. This is because of concerns about the slowdown in Japan.
The BOJ has continued its large-scale monetary easing policy by purchasing large amounts of government bonds from financial institutions, and has shown that it will allow long-term interest rates to fall to around 0.2%.
However, interest rates have fallen to a point far below minus 0.2%.
A market official said, “The BOJ plans to publish its future policy on purchasing government bonds in the afternoon, and it will be unacceptable to further reduce long-term interest rates if the purchase amount is reduced. "