Japan’s 10-year government bond yields have surged to near 16-year highs, reaching 1.25%, as investors brace for potential shifts in monetary policy. The yield on the benchmark bond has not been this high since 2009.
The surge in yields reflects growing concerns over inflation and the Bank of Japan’s (BOJ) ultra-loose policy stance. Analysts suggest that the BOJ may soon reconsider its long-standing policy of keeping interest rates near zero.
The rise in yields has also weighed on Japanese equities, with the Nikkei 225 index falling 1.5% in early trading. Investors are closely monitoring the BOJ’s next moves, as any policy shift could have far-reaching implications for global markets.
