The yield on 10-year Japanese government bonds reached a 30-year high
The yield on Japan's benchmark 10-year government bonds rose on August 18 to its highest level in nearly three decades. Early in the trading session, it rose by 2.5 basis points to 2.945%—its highest level since September 1996.
According to Channel NewsAsia, citing Reuters, the rise came amid higher bond yields overseas, as well as expectations of an imminent interest rate hike by the Bank of Japan.
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Futures on benchmark 10-year Japanese government bonds fell by 0.19 yen to 125.97 yen. Bond yields rise when bond prices fall.
Yields on debt securities worldwide have been rising due to heightened inflation fears amid rising oil prices and a lack of progress in peace talks in the Middle East. Markets also expect the Bank of Japan to raise interest rates at its next monetary policy meeting in September. Central bank officials have been making increasingly hawkish statements, while Reuters and other media outlets have reported on the possibility of more aggressive monetary tightening.
