Japan 10-Year Yield Hits 30-Year High Amid Rising Oil Prices and Fed Rate Hike Expectations

The Japanese government bond yield has risen to around 2.99% on Friday, nearing its 30-year high as it tracks US Treasury yields following a disappointing bond buyback operation from the US government.

Data showed that US producer inflation accelerated last month, strengthening expectations for a Federal Reserve rate hike next week.

Inflation risks have also been heightened by rising oil prices due to the ongoing US-Iran conflict.

The Bank of Japan (BOJ) is expected to continue tightening policy as underlying inflation moves closer to its 2% target, according to BOJ board member Kazuyuki Masu.