Japan’s 10-Year Yield Hits 2.95%, Highest in 30 Years

Japan’s bond selloff is accelerating.
The 10-year Japanese government bond yield climbed as high as roughly 2.95%, reaching its highest level since September 1996.
The move comes as investors price in persistent inflation, higher energy costs and an increasing chance that the Bank of Japan raises rates again as soon as September.
Pressure is spreading across the curve.
The 2-year yield has reached its highest level since 1995, while 30-year borrowing costs have climbed above 4.1%.
Japan spent decades with interest rates pinned near zero.
Now benchmark yields are approaching 3% while the country carries one of the largest government debt burdens in the developed world.
The closer the 10-year gets to 3%, the more difficult Japan’s fiscal and monetary balancing act becomes.