Japan's 10-year government bond yield rises to three-decade peak
TOKYO: Japan's benchmark 10-year government bond yield climbed to a three-decade high on Tuesday, driven by rising overseas bond yields and speculation about a near-term Bank of Japan interest-rate increase.
Japan's benchmark 10-year government bond yield surged to a three-decade high on Tuesday, according to wire material. The increase was attributed to rising yields in overseas bonds and speculation about an imminent interest rate hike from the Bank of Japan. The 10-year Japanese Government Bond (JGB) yield rose by 2.5 basis points to 2.95% at the start of trading, marking the highest level since September 1996.
The rise in yields signifies a decrease in bond prices, as bond yields and prices move inversely. The futures for 10-year JGB declined 0.19 yen to 125.97 yen. Globally, bond yields have been on the rise due to growing concerns about inflation, coupled with a surge in oil prices and stalemate in Middle East peace talks. There has been a mounting expectation for the Bank of Japan to raise rates at its next policy meeting in September, with central bank officials becoming increasingly hawkish in their comments.
Reuters and other media outlets have reported that the policy board may implement more aggressive tightening measures than previously anticipated.
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