(Corrects headline to add “Japan’s”)
TOKYO, Aug 3 (Reuters) - The yield on the 40-year Japanese government bond rose to a 3-1/2-month high on Wednesday, a day after the government said it planned to issue more bonds in that maturity.
The 40-year JGB yield, rose 4.5 basis points in late afternoon trade to 0.420 percent, its highest since mid-April. Relatively illiquid, it had remained untraded for most of the session.
Finance Minister Taro Aso told reporters after the government’s 13.5 trillion yen stimulus package was announced that the ministry would consider 40-year debt in consultation with market participants.
The Japanese government will issue several hundred billion yen (several billion dollars) of 40-year-bonds as soon as September to help fund the new stimulus measures, two people with direct knowledge of the matter said on Tuesday. (Reporting by Tokyo markets team; Editing by Eric Meijer)