Japan 10-Year Yield Holds Near 28-Year High

2026-04-10 03:10 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield climbed to around 2.4% on Friday, hovering near its highest level since 1998 amid growing expectations that the Bank of Japan will raise interest rates this month to stay ahead of inflation pressures.

Investors are now watching for guidance from BOJ Governor Kazuo Ueda ahead of the April 28 policy decision, following his forward guidance approach ahead of the previous rate hike in December.

Japanese government bond yields have surged since the start of the Middle East conflict, as higher energy prices intensified inflation concerns and reinforced bets on tighter BOJ policy.

However, oil prices fell sharply this week after the US and Iran agreed to a two-week ceasefire aimed at enabling negotiations.

Attention has now shifted to diplomatic talks in Islamabad this weekend, where Vice President JD Vance will lead a US delegation in meetings with Iranian officials.



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Japan 10-Year Yield Holds Near 28-Year High
Japan’s 10-year government bond yield climbed to around 2.4% on Friday, hovering near its highest level since 1998 amid growing expectations that the Bank of Japan will raise interest rates this month to stay ahead of inflation pressures. Investors are now watching for guidance from BOJ Governor Kazuo Ueda ahead of the April 28 policy decision, following his forward guidance approach ahead of the previous rate hike in December. Japanese government bond yields have surged since the start of the Middle East conflict, as higher energy prices intensified inflation concerns and reinforced bets on tighter BOJ policy. However, oil prices fell sharply this week after the US and Iran agreed to a two-week ceasefire aimed at enabling negotiations. Attention has now shifted to diplomatic talks in Islamabad this weekend, where Vice President JD Vance will lead a US delegation in meetings with Iranian officials.
2026-04-10
Japan 10Y Yield Rises Amid Ceasefire Uncertainty
Japan’s 10-year government bond yield climbed to around 2.4% on Thursday, reversing the previous session’s decline as uncertainty over the US-Iran ceasefire kept investors cautious about inflation risks. A senior Iranian official said elements of the ceasefire proposal had already been breached following fresh Israeli strikes on Lebanon, while Tehran continued to largely block the Strait of Hormuz. On Wednesday, Japanese yields had fallen after the ceasefire announcement, reflecting the country’s sensitivity to Middle East oil supply disruptions. Meanwhile, a former Bank of Japan official suggested the central bank is likely to raise its policy rate this month to avoid lagging in inflation control. Markets are now closely watching for signals from BOJ Governor Kazuo Ueda ahead of the April 28 policy announcement, similar to the guidance he provided in December before the last rate hike.
2026-04-09
Japan 10Y Yield Drops on Mideast Ceasefire
Japan’s 10-year government bond yield fell to around 2.35% on Wednesday, retreating from 28-year highs after the US, Iran and Israel agreed to a two-week ceasefire to allow negotiations for a potential agreement to end the war. President Donald Trump delayed planned strikes on Iranian civilian infrastructure for two weeks in what he called a “double-sided ceasefire,” while Iran agreed to reopen the Strait of Hormuz and Israel agreed to halt hostilities during the period. Earlier this week, Japanese yields surged to a near three-decade high as markets assessed the likelihood that the Bank of Japan will raise interest rates this month amid mounting inflation pressures driven by higher energy costs. Additional pressure stemmed from the yen’s weakness, which fuels imported inflation, though the temporary ceasefire in the Middle East and the reopening of Hormuz supported a rebound in the local currency.
2026-04-08