Japan's Bond Yield Hits 30-Year High as BOJ Rate Hike Speculation Grows

The yield on Japan's 10-year government bond has reached its highest level in about 30 years, rising to 2.930% at one point according to the Nihon Keizai Shimbun.

This surge is attributed to persistent expectations that the Bank of Japan (BOJ) will raise interest rates as early as September, which fueled selling of Japanese government bonds.

The yield on newly issued 2-year bonds also rose, breaking a record high for the first time in about 31 years since May 1995, reaching 1.690%.

Nakao Takehiko, former president of the Asian Development Bank (ADB), called for faster tightening by the BOJ, stating that Japan's real rate remains negative while every other country's real rate is positive.