The yield on Japan’s 10-year note has climbed to 1.5%, marking its highest level since 2009, while the 40-year equivalent has surged to a level unseen since its inception in 2007. The surge came amid pressure from a global sell-off in government bonds.
The rise in yields in Japan is fueled by speculation among investors that the Bank of Japan will continue to raise rates. Deputy Governor Shinichi Uchida indicated in his Wednesday speech that the benchmark interest rate is poised to gradually increase.
Additionally, Uchida reportedly stated last week that the central bank plans to persist with tapering its government bond purchases, despite the recent uptick in yields.
