Japanese Yields Track Treasury Yields Higher
2026-09-25 02:19
By
Jam Kaimo Samonte
1 min. read
Japan’s 10-year government bond yield climbed to around 3.1% on Friday, reaching its highest levels since 1996 and following the rise in US Treasury yields as expectations grew that the Federal Reserve will tighten policy further to contain inflation.
Bond markets continued to grapple with elevated oil prices that are fueling inflationary pressures further, though reports that the US and Iran are considering a phased deal provided some relief.
The latest US Treasury bond buyback operation also came in below expectations, with just $4.078 billion of 20- and 30-year bonds purchased against $10.4678 billion offered.
Domestically, former Bank of Japan board member Makoto Sakurai said the central bank is expected to raise interest rates roughly once every three months, potentially lifting them to 2% by around June next year as it seeks to address mounting inflationary pressures.