Nikkei: Mizuho hikes long-term prime rate amid spiking bond yields

The Japanese Mizuho bank hikes its long-term prime lending rate for the first time in 18 months in response to sharp gains in Japanese government bond yields, the Nikkei Asian Review reported on Wednesday.

The Nikkei noted, “The prime rate will go up five basis points for an annual interest rate of 0.95%, theMizuho Financial Group unit said Tuesday. The last time Mizuho hiked the rate was back in February 2015.”

“The 10-year JGB yield, which serves as a benchmark for long-term rates, sank to a record-low minus 0.3% back on July 8. However, the yield started climbing after the Bank of Japan left its negative policy rate unchanged at a meeting later that month. The 10-year yield is now hovering at around minus 0.085% amid speculation that the BOJ might shift gears on its monetary easing program.”