Japan 10-Year Yield Jumps to 27-Year High

2026-01-19 03:06 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield rose about 6 basis points to 2.24% on Monday, reaching its highest level since 1999, driven by bets on Bank of Japan interest rate hikes and expectations of increased fiscal spending under Prime Minister Sanae Takaichi.

The BOJ is widely expected to keep its policy rate steady at 0.75% this week, though markets are watching for a potential move in June.

Last week, BOJ Governor Kazuo Ueda reiterated that the central bank stands ready to raise rates if economic and price trends align with projections.

Investors are also assessing fiscal and political implications after Japanese Prime Minister Sanae Takaichi said she will dissolve parliament on Friday and call a snap election for February 8, seeking support for increased spending and a new security strategy.

She pledged a two-year halt to the 8% consumption tax on food and said her plans would create jobs, boost household spending, and raise other tax revenues.



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