Japan 10-Year Yield Rises on BOJ Rate Hike Bets

2025-11-26 02:25 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield climbed above 1.8%, approaching fresh 17-year highs amid growing expectations that the Bank of Japan could raise interest rates in December in response to persistently high inflation.

Several BOJ officials have signaled the possibility of an imminent rate hike, citing the inflationary impact of a weakening yen.

Governor Kazuo Ueda has also stressed the need for further data on wage growth while noting how a weaker yen could affect underlying inflation.

Meanwhile, Japan’s cabinet recently approved a 21.3 trillion yen stimulus package aimed at boosting economic growth and supporting households facing inflationary pressures.

The package is the largest since the Covid-19 pandemic and far exceeds last year’s 13.9 trillion yen supplementary budget, raising concerns over Japan’s fiscal health.

Prime Minister Sanae Takaichi’s government is reportedly planning to issue at least 11.5 trillion yen in additional bonds to fund its economic package.



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