Japan’s 10-year bond yield hits highest since 2008 in potential ill omen for risk assets

Japan’s benchmark 10-year government bond yield climbed to 1.61%, reflecting investor worries after a poor auction of the 20-year JGB. Rising yields on longer-term debts, such as the 20-year at 2.64% and the 30-year at 3.19%, indicate market shifts that could affect global financial stability.

Concerns over Japan’s fiscal policy and potential tightening of U.S. Treasury notes arise from these yield increases. Calls for a rate hike from the Bank of Japan, emphasized by veteran lawmaker Taro Kono, aim to combat inflation and strengthen the yen.