Japan Bond Yields Surge as BOJ Hike Bets Rise

2025-12-01 03:49 By Czyrill Jean Coloma 1 min. read

Japan’s 10-year government bond yield climbed above 1.88%, hitting its highest level since July 2006, as expectations of a Bank of Japan policy rate hike continue to build.

Governor Kazuo Ueda said Monday that the central bank will weigh the “pros and cons” of raising interest rates at its upcoming meeting, its clearest indication yet that a hike could come this month.

Markets now assign roughly an 80% probability to a rate increase at the December 19 policy meeting, up from about 60% last week.

Ueda also expressed confidence that Japan’s economy will rebound from its third-quarter contraction, noting that the impact of US tariffs has been milder than initially feared.

The twenty-year Japanese government bond yield jumped to a 26-year high, while the thirty-year yield soared to a record level.



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