Japan’s benchmark government bond yield climbed to the 3% mark on Tuesday for the first time since September 1996, underscoring the dramatic shift taking place in a market that for decades was defined by ultra-low interest rates.
According to Reuters, the rise reflects growing concerns over inflation, Japan’s fiscal position and the prospect of further monetary policy tightening by the Bank of Japan (BOJ). The selloff has pushed yields higher across the Japanese government bond (JGB) curve, as investors reassess the outlook for interest rates.
