Japan’s benchmark 10-year government bond (JGB) The yield rose to a 17-year-old high, reflecting concerns that could be wasted over to bond markets across other developed economies and reduce the demand for more risky assets such as cryptocurrencies and shares.
The yield rose over 1.61%, the highest since 2008. The move follows a gloomy auction of the 20-year-old JGB on Tuesday, indicating the investor’s concern for higher government spending and tax cuts.
The yield in the longer term debt rose to heights seen last month, with the 20-year-old bond that hit 2.64% and the 30-year-old climbing to 3.19%, according to data source trading.
The increases could easily be wasted into the US Treasury, which could potentially cause a tightening of financial conditions. For years, the yield remained depressed due to Bank of Japan’s ultra-light monetary policy. The limited yields around the world, especially in advanced nations.
Veteran legislator calls for boj rate hike
Veteran -Railing Party -Laws Taro Kono told Reuters on Tuesday that Japan should raise interest rates and counter fiscal disproportionate uninhabited to strengthen the weak yen, which has proven to be inflationary.
The central bank ended a massive, decade -long stimulus program last year and raised short -term rates to 0.5% in January. Since then it has kept the rates stable.
Kono’s comment follows a similar remark from US Finance Minister Scott Bessent, who asked Boj to raise the rates and put a floor under the yen.
