Japan’s 10-Year Bond Yield Reaches 17-Year High Above 1.61%
Japan's 10-year government bond (JGB) yield reached 1.61%, the highest in 17 years, signaling potential impacts on global bond markets and decreasing demand for riskier assets like cryptocurrencies and equities.
- Yields on longer-term bonds also increased, with the 20-year bond at 2.64% and the 30-year at 3.19%.
- The rise follows a poor auction of the 20-year JGB, raising concerns over higher government spending and tax cuts.
- This trend may affect U.S. Treasury notes, tightening financial conditions globally.
Calls for Rate Hike
Taro Kono, a veteran lawmaker, urged Japan to raise interest rates to bolster the weak yen, indicating it has become inflationary.
- The Bank of Japan ended a long-term stimulus program last year and raised short-term rates to 0.5% in January, maintaining them since.
- Kono's comments align with U.S. Treasury Secretary Scott Bessent's call for the BOJ to increase rates to stabilize the yen.