Japan 10Y Bond Yield Hits Near 29-year High

Japan’s 10-year government bond yield climbed toward 2.8% on Monday, reaching a fresh 29-year high as surging oil prices linked to the Iran conflict intensified inflation concerns and strengthened expectations for a near-term rate hike by the Bank of Japan. In the latest developments, President Trump warned Iran to “get moving” or face consequences after leaving China without securing major trade breakthroughs or meaningful progress toward ending the conflict and reopening Hormuz. Adding to hawkish expectations, BOJ board member Kazuyuki Masu last week called for rates to be raised as soon as possible, citing increasingly persistent inflation risks stemming from the war. The sharp depreciation of the yen has also increased pressure on the central bank to tighten policy in an effort to contain rising inflationary pressures. Investors are now turning their attention to upcoming GDP, trade, and inflation data releases this week for further clues on the strength of the Japanese economy.

Japan 10Y Bond Yield rose above 2.8, according to over-the-counter interbank yield quotes for this government bond maturity.

Japan 10 Year Government Bond Yield increased to 2.78%, the highest since May 1997. Over the past 4 weeks, Japan 10Y Bond Yield gained 30.62 basis points, and in the last 12 months, it increased 121.71 basis points.