Japan's Ministry of Finance set the coupon on this month's 10-year JGB at 3.1%,
the highest level since August 1996 and the first time the coupon has exceeded
3% in 30 years. Secondary-market JGB yields have been rising amid global
government-debt concerns. The MOF adjusts the 10-year coupon roughly quarterly
(2.7% for Jul–Sep, 2.4% for Apr–Jun); coupons are normally set near prevailing
market yields to avoid auction prices falling well below par. In Tuesday's
auction the bid-cover ratio rose to 3.76 from 3.29 at the prior sale, and the
The highest accepted price reached a 30-year peak.
