Japan’s 10-year government bond yield rises to three-decade peak

TOKYO - Japan's 10-year government bond yield surged to a three-decade high on Tuesday, according to Reuters. The yield climbed to 2.945%, the highest since September 1996, following a 2.5 basis point increase. The rise was attributed to the surge in overseas bond yields and speculation surrounding a potential interest rate hike by the Bank of Japan in the near future.

As of 0000 GMT, other cash bonds had not yet traded. Benchmark 10-year JGB futures fell 0.19 yen to 125.97 yen. The global trend of rising bond yields was fueled by growing inflation concerns amid surging oil prices and ongoing stalemate in Middle East peace talks. Expectations were also mounting for the Bank of Japan to raise rates during its next policy meeting in September.

Central bank officials' comments became increasingly hawkish, with reports suggesting the policy board might adopt a more aggressive tightening approach.