Japan's bond market gets the jitters over debt

JAPAN - The Japanese government bond market was hit by a new bout of jitters on Monday as concern rose that the country's debt could soon be downgraded again - and signs emerged that Japanese banks were selling more JGBs.

The unease pushed bond prices to their lowest levels for eight weeks, with the long-term interest rate rising to 1.395 per cent. Though this remains extremely low by international standards, any rise in the long-term rate threatens to deliver a painful blow for Japan, given t