Japan 30 Year Bond Yield

Japan's 10-year government bond yield touched 2.945%, its highest since September 1996, while the yen slipped back toward 159 per dollar. The 30-year yield hit 4.115% the same morning, and core inflation rose to 1.8% in July from 1.6% in June. Economists expect the Bank of Japan to lift its policy rate from 1% to 1.25% at its September 17-18 meeting. Bitcoin has ignored the stress, up 22% in seven days near $77,355, though analysts warn a yen surge could unwind carry trades as in August 2024.

The yield on Japan's 10-year government bond climbed to 2.93 percent, the highest level since 1996, amid fiscal concerns and growing expectations that the Bank of Japan may raise interest rates in the coming months. The 10-year yield rose as much as 0.055 percentage point, while the 30-year yield gained 0.05 percentage point to 4.06 percent, near its highest since its launch in 1999. Sources said the government of Prime Minister Sanae Takaichi supports a near-term rate hike by the BOJ, with the next move expected in September or October. Meanwhile, data released today showed Japan's economy grew more slowly than expected in the second quarter, with real gross domestic product expanding 1.1 percent compared with a market forecast of 2.0 percent.