Japan JGB Yield Hits 30-Year High as Inflation Fears Spread

Japan's 10-year government bond (JGB) yield surged to a 30-year high on Thursday, rising 8 basis points to 3.055%. This is its highest level since August 1996.

The increase in JGB yields comes as US Treasury yields jumped overnight after a stronger-than-expected purchasing managers' report sparked fresh inflation fears and an auction of five-year notes was poorly received.

Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management, said that Japanese bond yields are facing upward pressure due to growing concerns about inflation on a weaker yen. A weaker yen increases import costs, pushing domestic prices higher.