Japan 10‑year government bond yield hits 30‑year high

The benchmark 10‑year Japanese Government Bond (JGB) yield rose to 2.880%, the highest level since September 1996. The two‑year yield reached 1.44% and the five‑year yield climbed to 1.995% as oil prices surged after U.S. President Donald Trump said a tentative Iran‑war settlement was over, pushing U.S. Treasury yields higher.

Investors cited rising inflation risks and concerns over Japan’s fiscal health. The finance ministry announced an auction of about ¥2.5 trillion ($15.4 billion) in five‑year notes later in the day. Analysts noted that the government’s large spending plans in its recent policy blueprint could pressure the Bank of Japan to keep rates low, increasing inflationary pressures. The blueprint also signals a possible revision of monetary‑policy language.

“Ataru Okumura, chief rate strategist at SMBC Nikko Securities, said the market is seeing yields rise on fiscal factors and warned that fiscal expansion could raise inflation risks.”