Japanese Bond Yields Soar Amid Inflation Fears and BOJ Tightening Bets

Japanese government bond yields rose on Monday as inflation pressures and expectations of further monetary policy tightening weighed on debt prices.

The benchmark 10-year yield climbed to its highest level since August 1996, reaching 3.095%, a 2-basis-point increase from the previous day.

The two-year JGB yield rose to 1.950%, matching a 31-year peak reached last week and highlighting continued price pressures that could force the Bank of Japan (BOJ) to raise interest rates further.

Data released on Monday showed inflation in Japan's services sector accelerated at its fastest annual pace in over two years, adding to expectations of BOJ rate hikes.