Mubasher: Most Japanese banks slashed their fixed 10-year mortgage rates for prime customers by 0.05% as of February, according the state's public broadcasting organisation.

The rate is now 1.05% at the Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation and Resona Bank. It is also 0.7% at Sumitomo Mitsui Trust Bank. Mizuho Bank is keeping its rate unchanged at 1.05%.

The yield on the benchmark 10-year government bond has been sliding since the start of this year, due to the slowdown of China's economy and lower crude oil prices.

The long-term rate hit an all-time low of below 0.1% last Friday, after the Bank of Japan announced it was introducing a negative interest rate policy.