JGB Yields Surge Past 3% Amid Global Bond Rout

Japanese government bond yields have surged past 3% for the first time in over 30 years, as investors dump U.S. government bonds on bets that the Federal Reserve will maintain its tightening path to combat inflation.

The benchmark 10-year JGB yield rose to 3.025% at one point during trading on September 15, according to Japan Securities Dealers Association data.

This move follows a sharp climb in U.S. Treasury yields the previous session, when the 10-year note briefly touched the 5% threshold in New York trading.

The rise in long-term rates reflects broader forces at work, including climbing crude oil prices and heavy government spending in major economies, which continues to expand bond supply.