Japan 10Y Yield Hovers 27-Year High

Trading Economics
2025.12.24 04:05
portai
I'm PortAI, I can summarize articles.

Japan's 10-year government bond yield is near a 27-year high at around 2%, driven by concerns over expansionary fiscal policies and fiscal sustainability. The FY2026 budget may exceed ¥122 trillion, requiring significant bond issuance. The Bank of Japan's rate hike to 0.75% suggests further tightening, with potential future increases. Rising yields could threaten economic stability by 2026, challenging investor confidence in government bonds and fiscal expansion.