Japanese Government Bond Yields Surge Towards Multi-Decade Highs

Japanese government bond yields rose on Friday, pushing long-term yields towards multi-decade highs. The benchmark 10-year JGB yield climbed 0.5 basis points to 3.100 percent, approaching the 30-year high of 3.115 percent set last week.

The global debt market remains volatile, with US Treasury yields reaching multi-decade highs driven by inflation concerns tied to the Middle East conflict and expectations of further rate hikes from central banks.

Annual core inflation in Tokyo accelerated in September at its fastest pace in 10 months, highlighting mounting price pressures that bolster the case for further rate hikes. Market expectations now point to a likely hike from the Bank of Japan in December rather than October.