Long-Term Interest Rate Hits 30-Year High Amid Inflation Fears

The long-term interest rate in Japan has climbed to its highest level since August 1996, reaching 3.115% on September 25. This milestone was achieved due to rising oil prices and expectations of further Federal Reserve tightening.

A key indicator of this trend is the yield on Japan's benchmark 10-year government bond, which serves as a benchmark for long-term interest rates in the country.

The increase in US long-term interest rates has also contributed to higher Japanese yields. Additionally, concerns about inflation have led investors to sell government bonds, further pushing up yields.

Takuya Onizawa, a bond strategist at Mitsubishi UFJ Morgan Stanley Securities, noted that the combination of these factors may prompt the Bank of Japan to continue raising rates in the future.