TOKYO -- The coupon on new 10-year Japanese government bonds hit the Bank of Japan's recently raised yield cap at an auction Thursday, less than a month after the move, signaling the potential for even higher borrowing costs as investors continue to test the central bank.
Bonds
Highest bond coupon in 7 years puts pressure on BOJ yield cap
10-year JGBs hit 0.5% mark, signaling heavier Japanese fiscal burden
Some traders see pressure on the yen eventually forcing the Bank of Japan's hand if it keeps interest rates low. © Reuters
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