For decades, Japan was the poster child for rock-bottom interest rates. A place where deflation was so persistent that the concept of “yield” felt almost quaint. That era, according to BlackRock, is now decisively over.
In its weekly market commentary dated July 13, 2026, the world’s largest asset manager pointed to Japan’s government bond market as definitive proof that the global rates reset isn’t just a talking point. It’s the new reality.
The numbers tell the story
Ten-year Japanese Government Bond yields have climbed to between 2.78% and 2.88% in mid-July. For JGBs, these are levels not seen since September 1996.
Long-dated JGB forward rates are nearing 5% for the first time in years.
