Japan's Long-Term Interest Rate Surpasses 3%, Sparking Fiscal Concerns

Japan's long-term interest rate has surpassed 3% for the first time in nearly three decades, raising concerns about the country's fiscal sustainability. The 10-year government bond yield rose to 3.015 percent on Wednesday, marking its highest level since September 1996.

The sharp increase in yields reflects intensified selling pressure across Japan's government bond market. Economists warn that higher borrowing costs for businesses could curb corporate equipment investment and make it difficult for the government to achieve its plans to promote such investment.

Bank of Japan Governor Kazuo Ueda has expressed readiness to raise interest rates, but economists are skeptical about the long-term impact. They predict that even a rate hike in September will not halt the yen's decline.