Japan 10Y Bond Yield traded above 3 percent

Japan 10Y Bond Yield rose above 3, according to over-the-counter interbank yield quotes for this government bond maturity.

Japan’s 10-year government bond yield jumped to around 3% on Tuesday, reaching its highest level since 1996 as expectations mounted that the Bank of Japan will raise interest rates this month to address the impact of a weak yen and import-driven inflation. Reports indicated that US Treasury Secretary Scott Bessent urged Prime Minister Satsuki Katayama and BOJ Governor Kazuo Ueda to raise interest rates, following his earlier remarks that he expects the Japanese central bank to “do the right thing.” Japanese bond yields also tracked US Treasury yields higher as investors increased bets that the Federal Reserve will deliver a September rate hike. Elsewhere, oil prices climbed for a second straight day after US forces struck an island in the Strait of Hormuz, while Iran responded with attacks on the UAE and Jordan. Higher energy costs are fueling inflation concerns and strengthening expectations for tighter monetary policy.

Japan 10 Year Government Bond Yield increased to 2.96%, the highest since September 1996. Over the past 4 weeks, Japan 10Y Bond Yield gained 13.06 basis points, and in the last 12 months, it increased 133.36 basis points.