Japan 10Y Yield Hits Fresh 29-Year High

2026-05-12 02:35 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield rose to around 2.55% on Tuesday, hitting its highest level since 1997 as markets increasingly priced in an imminent interest rate hike from the Bank of Japan.

The central bank’s Summary of Opinions from its April meeting showed policymakers signaling that rate increases could come as early as the next meeting, as surging oil prices intensified inflation risks.

Members noted that Japan’s economy is recovering at a moderate pace but faces headwinds from higher energy costs, while underlying CPI inflation was seen moving closer to the 2% target.

Several policymakers indicated that a rate hike could be warranted soon, with one stating that the BOJ should tighten policy unless clear signs of economic weakness emerge.

Meanwhile, elevated JGB yields drew strong demand for the latest 10-year bond auction, with the bid-to-cover ratio posting at 3.9, the highest since September.



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