New Delhi, Dec. 19 -- The yield on the benchmark 10-year Japanese government bond (JGB) rose 5 basis points to hit its highest level since August 1999 after the country's central bank lifted its key policy rate on Friday, December 19, and signalled further tightening.

The 10-year JGB bond yield rose to 2.015%, breaking above the 2% level that had served as a symbolic ceiling during Japan's decades-long struggle with deflation.

The rise in yields followed the Bank of Japan's (BOJ) decision to hike the key interest rate by a quarter point to a three-decade high of 0.75%. While the move was telegraphed in ⁠advance by BOJ Governor Kazuo Ueda, the central bank also said it was ready to continue normalising policy.

The JGB yields have ...