Japan's Bond Yield Hits 30-Year High on BOJ Hawkishness
Japan's 10-year government bond yield has risen to around 3.1% on Thursday, its highest level in 30 years.
This increase is attributed to strong economic data and hawkish signals from the Bank of Japan, which have reinforced expectations for a faster pace of policy tightening.
The central bank's data showed manufacturing sentiment improved in the third quarter to its highest level in more than eight years, while overall business conditions reached their most favorable levels in decades.
Additionally, a summary of opinions from the BOJ's September meeting revealed that policymakers saw a need to accelerate the pace of rate hikes or move them closer to the central bank's target in the near term.
The recent election of Prime Minister Sane Takaichi has also contributed to sustained selling pressure on Japanese bonds, amid ambitious spending plans and worsening fiscal conditions.