Japan's JGB Yields Hit Three-Decade High Amid Global Inflation Fears

Japan's benchmark 10-year government bond yield has reached its highest level in over two decades. The yield rose to 2.95 per cent on Tuesday, surpassing the previous high of September 1996. This increase is driven by rising overseas bond yields and speculation about a near-term interest-rate hike from the Bank of Japan.

The global market has seen a surge in inflation worries due to climbing oil prices and stalled peace talks in the Middle East. As a result, bond yields have risen across the board.

Momentum is building for the BOJ to raise rates at its next policy meeting in September. Central bank officials have turned increasingly hawkish, with some reports suggesting more aggressive tightening than previously anticipated.