Japan’s benchmark 10-year government bond yield hit a 30-year high on Thursday, driven by rising oil prices and concerns over the country’s fiscal health. The yield rose 1.5 basis points to 2.880%, the highest since September 1996.
Economic Concerns
The increase in bond yields is a sign of investor unease about Japan’s ability to manage its debt and control inflation. The country’s finance ministry is set to auction about 2.5 trillion yen ($15.38 billion) of 5-year notes, which may be affected by the rising yields.
The Japanese government is considering revising language on monetary policy in its economic blueprint, which could impact the Bank of Japan’s decision-making. Ataru Okumura, chief rate strategist at SMBC Nikko Securities, noted that fiscal expansion increases inflation risks, which is a major concern for investors.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
