What kind of interest rate is released by the Ministry of Finance?
The semiannual compound interest rate on a constant maturity basis calculated on prevailing prices of fixed income JGBs in the secondary market at the market closing time (3pm) is released.
On what time are the interest rates released?
They are released at 9:30 a.m. on the next business day.
What is the interest rate on a constant maturity basis?
It is the interest rate for a specific period of time. For instance, the interest rate for eight years is calculated from the yield curve whose remaining maturity corresponds with just eight years.
What is the yield curve?
It is a curve which is plotted by connecting the points which represent the relationship between yields to maturity and remaining maturity of JGBs.
How are the prevailing market yields of each JGB calculated?
They are calculated by using the average price of "Reference Statistical Prices (Yields) for OTC Bond Transactions" provided by Japan Securities Dealers Association (JSDA).
Note that the prevailing market yields of before July, 2002 are calculated by using the following data.
| Date | Provider | Market Data | |
|---|---|---|---|
| Sep 24, 1974 ~ Nov 30, 1998 | Tokyo Stock Exchange | Close Price or Special Quotation | |
| Dec 1, 1998 ~ Jul 31, 2002 | JSDA | The price of "Standard Quotation" |
How are the interest rates on a constant maturity basis calculated?
The interest rates on a constant maturity basis are calculated on the yield curve which is formed based on the prevailing market yields of selected specific JGBs by grid. If you need more information, please click here [69KB,PDF]