Japan's Bond Yields Soar as Oil Prices and Yen Weakness Fuel Inflation Fears

The 10-year Japanese government bond (JGB) yield has risen to 2.815% on July 24, driven by concerns over inflation triggered by surging crude oil prices and a weakening yen.

The market is speculating that the Bank of Japan (BOJ) may raise interest rates earlier than expected in response to these external factors.

On July 23, yields on medium-term bonds surged sharply, with the newly issued 2-year JGB briefly hitting 1.5%, the highest level since May 1995.