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Japan’s government bond yields have climbed to multi-decade highs today, as the sell-off continues.
Bloomberg has the details:
The 10-year yield rose 10 basis points to 3.075% on Thursday, its highest since 1996, after the three-day break. The five-and 20-year rates also gained about 10 basis points each to 2.375% and 3.915%, respectively.
The main story is still the huge global bond selloff, with yesterday seeing the biggest jump in the 10yr Treasury yield (+15.2bps) since the market turmoil around Liberation Day in April 2025.
The main driver was a strong batch of PMIs, along with a rebound in oil prices, which both led to mounting speculation about faster rate hikes. Indeed, futures this morning are pricing a 71% chance of a Fed rate hike at the next meeting in October.
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