Tuesday, July 3, 2007

Japan 10-Year Government Bonds Rise; MOF Sets Highest Coupon Since August

(Bloomberg) -- Japan's 10-year bonds rose after the
Ministry of Finance set the highest coupon since August at an
auction of benchmark debt today, ending speculation that the
government would reissue securities with a lower payout.

The ministry set a 1.9 percent coupon on 1.9 trillion yen
($15.5 billion) of the new securities after yields climbed to
their highest in almost a year last month. Brokers had asked the
government to reissue the benchmark No. 286 bond to help ease a
shortage of the debt in the repurchase market, Kazuo Katayama,
director of the ministry's finance division, said last week.


Read more at Bloomberg Bonds News

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