Japan 10Y Yield Gains as Traders Weigh BOJ Outlook

2026-08-27 02:42 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield climbed above 2.9% as investors continued to evaluate the outlook for Bank of Japan monetary policy.

Markets are currently pricing in around an 87% chance of a 25 basis point BOJ rate hike in September to 1.25%, up sharply from about 23% before the central bank’s July meeting.

Earlier this week, former BOJ board member Seiji Adachi said the central bank will likely raise rates next month and again as early as January, warning that keeping rates unchanged could reignite a yen selloff and accelerate import-driven inflation.

Meanwhile, BOJ Deputy Governor Ryozo Himino said the central bank remains vigilant to inflation risks and will discuss the need for further policy tightening.

Elsewhere, data showed Japan’s unemployment rate fell to 2.4% in July, the lowest in a year, while Tokyo’s inflation rate accelerated to a five-month high in August.



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