Overview
- The yield on newly issued 10-year Japanese government bonds climbed intraday to about 3.025–3.035% on Tuesday, the highest level since September 1996.
- U.S. 10-year Treasury yields rose sharply on September 14 and briefly hit the 5% area as markets priced in more Fed rate increases, triggering selling in global Treasuries.
- That selling in U.S. bonds carried into Japan and helped lift Japanese long-term rates after years of very low yields.
- The yen traded in the upper ¥154 per dollar range, around ¥154.88, and Tokyo stock indices recorded modest declines as investors adjusted fixed-income and currency positions.
- Higher long-term yields raise borrowing costs across the economy and could keep markets volatile, so investors are watching upcoming U.S. Fed signals and global bond flows for the next move.