Japan 10-Year Yield Falls as BOJ Hikes Rates

2026-09-18 01:15 By Jam Kaimo Samonte 1 min. read

Japan’s 10-year government bond yield slipped to around 2.95% on Friday, extending its decline into a third session after the Bank of Japan raised its policy rate by 25 basis points to 1.25% in a widely expected move, the highest level since 1995.

Investors will now watch for signals on further tightening as policymakers navigate rising inflation and wage growth, along with pressure from US Treasury Secretary Scott Bessent to pursue more aggressive rate increases.

Meanwhile, Japan’s core inflation eased to 1.7% in August from 1.8% in July, marking its first slowdown in four months.

However, expectations that price pressures could strengthen in the coming months continued to support a hawkish BOJ outlook, while disruptions in the Middle East added to inflation risks.

Japanese bond yields also followed declines in global yields as falling oil prices helped ease concerns over inflation.



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Japan 10-Year Yield Falls as BOJ Hikes Rates
Japan’s 10-year government bond yield slipped to around 2.95% on Friday, extending its decline into a third session after the Bank of Japan raised its policy rate by 25 basis points to 1.25% in a widely expected move, the highest level since 1995. Investors will now watch for signals on further tightening as policymakers navigate rising inflation and wage growth, along with pressure from US Treasury Secretary Scott Bessent to pursue more aggressive rate increases. Meanwhile, Japan’s core inflation eased to 1.7% in August from 1.8% in July, marking its first slowdown in four months. However, expectations that price pressures could strengthen in the coming months continued to support a hawkish BOJ outlook, while disruptions in the Middle East added to inflation risks. Japanese bond yields also followed declines in global yields as falling oil prices helped ease concerns over inflation.
2026-09-18
Japan 10-Year Yield Holds Near 30-Year High
Japan’s 10-year government bond yield remained just below 3% on Thursday, staying near its highest level since September 1996 as investors awaited the upcoming Bank of Japan policy decision. The BOJ is widely expected to raise borrowing costs on Friday as policymakers contend with persistent inflationary pressures, with another rate increase anticipated by the end of January. US Treasury Secretary Scott Bessent has also repeatedly called on the BOJ to pursue more aggressive tightening to limit excessive yen weakness. Meanwhile, markets continued to assess Japan’s fiscal outlook amid Takaichi’s plans for substantial government spending and tax cuts. Elsewhere, the US Federal Reserve raised interest rates for the first time in three years and signaled further tightening this year to curb inflation.
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Japan 10-Year Yield Hits Fresh 30-Year High
Japan’s 10-year government bond yield climbed above 3%, 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, data showed that Japanese exports rose more than anticipated in August, supported by strong demand for AI-related chips despite ongoing supply disruptions stemming from the conflict in the Middle East.
2026-09-15