Coupon rate for new 10-year Japan gov't bonds stays at 0.8%

The Finance Ministry on Thursday left the coupon rate for the new 10-year Japanese government bonds unchanged from July at 0.8 percent, given that yields on the country's sovereign debt in the market have been moving around that level in recent days.

In an auction, the No. 329 issue of benchmark long-term bonds drew 7,652.7 billion yen in bids, of which the ministry accepted 2,177.4 billion yen. The debt will be issued on Aug. 5 and will mature on June 20, 2023.

The coupon rate is the interest rate stated on bonds at their issuance. Interest rates move inversely to bond prices.

Recently, Japanese shares have been on a recovery track and speculation has been growing that the U.S. Federal Reserve will taper off its asset purchases, discouraging some investors from boosting their holdings of Japanese government debt, analysts said.

But demand for the debt is unlikely to wane for the time being as the Bank of Japan has pledged to buy more than 7 trillion yen worth of government bonds every month, aiming to keep longer-term interest rates low, they added.