Japan's Bond Yields Soar to 30-Year High Amid Inflation Concerns

Japan's bond yields have hit a 30-year high of 3% as investors grow increasingly concerned about inflation and the country's rising sovereign debt levels. The Japanese Ministry of Finance reported that government debt-to-GDP ratio reached 249% in 2025, one of the highest globally.

The Bank of Japan (BoJ) faces a tough decision on monetary policy, balancing domestic economic weakness with growing pressure to raise interest rates and contain inflation risks. Analysts predict two interest rate hikes this year.

From a technical perspective, the USD/JPY pair is exhibiting bullish momentum, with key resistance levels at ¥161.80 and ¥164.00. If short-term support at ¥159.50 is broken, the next critical floor lies at ¥158.50.