Japan’s key long-term rate hits 15-year high

Tokyo — The yield on the newest issue of 10-year Japanese government bonds, regarded as the country’s key long-term interest rate, rose to a 15-year high of 1.400 pct in interdealer trading in Tokyo on Tuesday.

JGBs remained under downward pressure since Monday when stronger-than-expected economic growth data triggered speculation that the Bank of Japan will raise interest rates sooner than expected.

The 10-year yield may test 1.5 pct on expectations for higher interest rates, an official at a Japanese securities house said.