The long-term interest rate temporarily rose to 3.115%, reaching its highest level in 30 years. The decline in US Treasury prices was reported as a contributing factor, while the yen also weakened during the same period.
The long-term interest rate temporarily rose to 3.115%, reaching its highest level in 30 years. The article explains that the decline in US Treasury prices was a contributing factor.
Factors cited as background included concerns about US inflation over rising crude oil prices and expectations of additional rate hikes, which were also said to have affected movements in the dollar-yen exchange rate.
Market concerns were expressed about the consistency of fiscal and monetary policy, and it was suggested that uncertainty was being fueled by the Bank of Japan’s monetary policy normalization and the votes of its Policy Board members.
The possibility that rising interest rates could spill over into the real estate market was noted, with the view expressed that home-buying budgets and the risks associated with selling should be assessed carefully.