Japan's 10-year yield briefly touches 3 per cent in Tuesday's session
The yield on Japan's benchmark 10-year government bond briefly reached 3 per cent on Tuesday, the first touch of that level since September 1996. Five-year yields printed a record and two-year yields stood at a height unseen in more than three decades. The Bank of Japan's policy rate is 1 per cent, and markets priced an 80–90 per cent chance of a step to 1.25 per cent at the 17–18 September meeting. The yen traded around 160 per dollar, a level watched for intervention.
Economics & Markets··Morning
Japan's 10-year yield briefly reached 3 per cent on Tuesday
Japan's benchmark 10-year government bond yield briefly reached 3 per cent on Tuesday. Nikkei Asia reported from Tokyo that the yield touched the level only briefly during Tuesday's session, a three-decade high. The 10-year Japanese government bond yield reached 3 per cent for the first time since September 1996. Five-year yields stood at a record. Two-year yields remained at a level unseen in more than three decades. The 10-year point is still the reference for Japan's government-bond curve.[1], [2]
The Bank of Japan stands at 1 per cent as the yen trades near 160
The Bank of Japan's policy rate stands at 1 per cent. Markets priced an 80–90 per cent chance of a move to 1.25 per cent at the 17–18 September meeting. The yen traded around 160 per dollar, the level watched for intervention. US Treasury Secretary Scott Bessent said he expects Japanese policy steps that strengthen the yen. Nikkei Asia described Tuesday's move as part of a wider sell-off in sovereign debt amid inflation and mounting fiscal pressures. Yields rose across the Japanese curve; inflation and fiscal expansion under the current administration drew investor scrutiny.[1], [2]
Bloomberg's global bond-yield gauge reached 3.72 per cent, the highest since 2008
A Bloomberg gauge of global bond yields reached 3.72 per cent, its highest since 2008. Nikkei Asia framed Tuesday's print as part of a wider sell-off in sovereign debt rather than a Japan-only move, and pointed to inflation and mounting fiscal strain. The global gauge moved to a level unseen since 2008, with Japan's note inside that sale.[1], [2]
