TOKYO, Sept. 1 (Xinhua) -- Japan's benchmark 10-year government bond yield spiked to 3 percent on Tuesday, a level unseen since October 1996, amid growing concerns over the country's deteriorating fiscal health.
The barometer of long-term interest rates crossed the key threshold a day after media reported that budget requests from Japanese government ministries and agencies for fiscal 2027 were set to hit a new high of about 143 trillion yen (around 894 billion U.S. dollars).
While the figure is not final, it underscores Prime Minister Sanae Takaichi's drive to ramp up spending to boost the economy, despite the fiscal constraints facing the heavily indebted nation.
The recent uptrend in Japanese government bond yields also reflects growing market expectations that the Bank of Japan will raise interest rates at its policy meeting in September.
Higher bond yields will put further pressure on Japan's debt-servicing costs. With outstanding debt twice the size of its economy, Japan's fiscal health is the worst among advanced economies, Kyodo News said. ■