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The yield on 10-year Japanese government bonds has risen above 0.1 per cent for the first time in a year.
Yield on Japan’s 10-year notes rose to 0.107 per cent on Thursday in afternoon trading, having first fallen below the 0.1 per cent level on January 29 2016 when the Bank of Japan decided to cut interest rates into negative territory for the first time.
In July, 10-year JGB yields traded as low as a record minus 0.295 per cent.
The BoJ then set a cap on 10-year bond yields of zero per cent in September, essentially promising to buy bonds offered for sale at that price.
On January 31 the central bank kept interest rates on hold at minus 0.1 per cent, but said in its economic outlook that it expected real GDP growth to reach 1.5 per cent in 2017, up from its previous forecast of 1.3 per cent.