Japan’s government bond market is having a moment. And not the good kind.
JGB prices have fallen sharply as yields surged across the curve. The 30-year JGB yield hit approximately 4%, a level not seen since Japan first launched the instrument back in 1999.
The numbers tell the story
The selloff hasn’t been subtle. Japan’s 30-year yield climbed roughly 30 basis points to approximately 3.92% in recent trading, while the 40-year yield surged to around 4.24%. Both represent record highs. The 10-year yield rose to about 2.38%, its highest level in decades.
The Bank of Japan previously capped the 10-year yield at 0.5% under its yield-curve control policy. Long-term yields now exceed 4%. Over the past year alone, the 30-year yield has risen by 1.27 percentage points.
