Japanese Bond Market Sees Long-Term Interest Rates Rise Amid Rate Hike Expectations

The Japanese bond market saw long-term interest rates rise on September 27th, with the benchmark newly issued 10-year JGB yield closing at 2.890%, up 0.005 percentage points from the previous day.

This increase was driven in part by U.S. inflation data released on September 26th, which pushed yields higher in the U.S. Treasury market.

Additionally, remarks made by Bank of Japan Deputy Governor Ryozo Himino were interpreted as supportive of a rate hike this autumn, further encouraging bond selling.

The rise in yields was also influenced by speculation that the Federal Reserve may delay rate cuts due to personal consumption expenditures (PCE)-related inflation data showing growth exceeding market expectations.