Coupon rate for new 10-year Japan gov't bonds cut to 0.6%

The Finance Ministry said Wednesday it lowered the coupon rate for new 10-year Japanese government bonds to 0.6 percent, reflecting the recent downward trend of long-term interest rates in the country.

In an auction, the No. 331 issue of benchmark long-term bonds drew 8,037.2 billion yen in bids, of which the ministry accepted 2,176.9 billion yen. The debt will be issued Friday and will mature on Sept. 20, 2023.

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

Demand for the Japanese government debt has been firm as the Bank of Japan has pledged to buy a huge number of government bonds every month, aiming to keep longer-term interest rates low to stimulate business and investment activities.