Japan's 10-Year Bond Yield Briefly Hits 2.95%, Reaching 30-Year High

The yield on Japan's 10-year government bonds, a benchmark for long-term interest rates, briefly rose to 2.95% on August 31, pushing bond prices down to their lowest level in 30 years.

According to the Nikkei and other media outlets, the yield on 10-year Japanese government bonds temporarily climbed to 2.95% in the Japanese bond market during the morning session.

This represents a 0.03 percentage point increase from the end of the previous week, marking the highest level in 30 years since October 1996.

The Nikkei reported that expectations are strengthening in the market that the Bank of Japan will accelerate interest rate hikes as the U.S. shows a positive attitude toward rate increases and the depreciation of the yen continues.

Local time on August 28, Federal Reserve Chair Kevin Warsh stated at the Jackson Hole Economic Symposium held in Wyoming that if U.S. core inflation indicators continue to stay above the 2% target, "there is work to be done."

This remark was interpreted as hinting at future rate hikes, which drove U.S. Treasury yields higher.

As dollar-buying continued and the value of the yen declined, the dollar-yen exchange rate in the foreign exchange market hit the 160-yen range per dollar, marking a one-month low.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.