Japan’s 10-year bond yield tops 3% for first time since 1996

Japan’s 10-year government bond yield moved above 3.00 percent for the first time since 1996. The move followed reports that US Treasury Secretary Bessent told Japanese officials that interest rate increases are needed. The yield breakout signals tighter financial conditions in Japan: higher funding costs, potential pressure on equity valuations, and possible support for the yen if policy tightens. Global impact: upward pressure on global bond yields and risk assets as Japan’s long-duration anchor shifts.