Japan 10Y Yield Rises on Rate Hike Bets

2026-03-26 03:00 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield rose to around 2.27% on Thursday, ending a two-day decline amid growing expectations of a near-term interest rate hike from the Bank of Japan.

Shorter-dated 2-year yields surged to three-decade highs, while 5-year yields climbed to record levels.

These expectations were driven by an oil-driven inflation shock stemming from the Middle East conflict, with major central banks signaling readiness to tighten policy amid persistent price pressures.

Last week, the BOJ kept its policy rate unchanged but maintained a tightening bias, with Governor Kazuo Ueda leaving the door open for an April hike.

Oil prices continued to rise amid conflicting statements from the US and Iran over diplomatic efforts to resolve the Middle East conflict.

A former Japanese national security adviser suggested the country consider deploying warships to help secure the critical waterway alongside other nations, protecting both its own vessels and those of international partners.



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Japan 10Y Yield Rises on Rate Hike Bets
Japan’s 10-year government bond yield rose to around 2.27% on Thursday, ending a two-day decline amid growing expectations of a near-term interest rate hike from the Bank of Japan. Shorter-dated 2-year yields surged to three-decade highs, while 5-year yields climbed to record levels. These expectations were driven by an oil-driven inflation shock stemming from the Middle East conflict, with major central banks signaling readiness to tighten policy amid persistent price pressures. Last week, the BOJ kept its policy rate unchanged but maintained a tightening bias, with Governor Kazuo Ueda leaving the door open for an April hike. Oil prices continued to rise amid conflicting statements from the US and Iran over diplomatic efforts to resolve the Middle East conflict. A former Japanese national security adviser suggested the country consider deploying warships to help secure the critical waterway alongside other nations, protecting both its own vessels and those of international partners.
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