Long-term interest rates in the Tokyo bond market reached the 3% mark for the first time in 30 years. The move was attributed in part to U.S. pressure over the Bank of Japan's monetary policy, with the U.S. Treasury secretary suggesting that there was information the market did not have.
Long-term interest rates in Tokyo's bond market reached 3% around noon. In addition to higher crude oil prices and fiscal concerns, the move was attributed to U.S. pressure over the Bank of Japan's monetary policy.
On 31 August U.S. Eastern Time, Treasury Secretary Scott Bessent, who was chairing the G20 Finance Ministers and Central Bank Governors' Meeting, said in a CNBC interview that the Bank of Japan might raise interest rates sooner, prompting broader views that pressure for yen depreciation had intensified.
Following the remarks, long-term interest rates continued to rise on the morning of the 1st Japan time, and were reported to have remained sluggish even after reaching 3%. The article cites three factors: growing expectations of an early Bank of Japan rate hike, U.S. pressure over monetary policy, and higher crude oil prices and fiscal concerns.