Japan 10Y Bond Yield Hits 30-year High

Japan’s 10-year government bond yield climbed above 3% on Tuesday, reaching its highest level since September 1996 as the global bond selloff deepened amid surging energy prices, mounting inflation risks and growing fiscal concerns. The Bank of Japan is also widely expected to raise its policy rate to 1.25% on Friday, its highest level since April 1995, as the central bank faces persistent upside risks to prices. Markets will be closely watching for BOJ guidance on the potential for another rate hike later this year. US Treasury Secretary Scott Bessent has also repeatedly urged the BOJ to tighten policy more aggressively to curb excessive yen weakness. Meanwhile, oil prices extended their gains as Saudi Arabia’s East-West pipeline remained shut, while Ukraine disputed President Trump’s claim that it had already reached an agreement with Russia to halt attacks on energy infrastructure.

Japan 10 Year Government Bond Yield increased to 3.02%, the highest since September 1996. Over the past 4 weeks, Japan 10Y Bond Yield gained 9.74 basis points, and in the last 12 months, it increased 141.88 basis points.

Japan’s 10-year government bond yield held around 3% on Tuesday, remaining near its highest level in three decades as investors prepared for the Bank of Japan’s policy meeting this week. The BOJ is widely expected to raise its policy rate to 1.25% on Friday, the highest since April 1995, as the central bank contends with persistent upside risks to prices. Markets are also watching for BOJ guidance on the possibility of another rate hike later this year. Meanwhile, US Treasury Secretary Scott Bessent has repeatedly called on the BOJ to tighten policy more aggressively to prevent excessive yen weakness. Oil prices also extended their gains after Saudi Arabia shut down the critical East-West pipeline that bypasses the Strait of Hormuz, adding to inflation concerns. Japan’s economy depends heavily on oil imports from the Middle East, leaving it particularly exposed to sharp swings in energy prices.