Japan's 10-Year Government Bond Yield Climbs to 1.11%

On Friday, Japan's 10-year government bond yield reached 1.11%, the highest level in over 13 years. This significant increase reflects the market's anticipation of tighter monetary policies, driven by persistent inflation and recent discussions by the Bank of Japan (BOJ) on potential rate hikes.

Market Expectations and BOJ's Stance

The yield has seen a steady rise, with a 5.28 basis points increase over the past month and a 52 basis points surge over the last year. A summary of opinions from the BOJ's December meeting revealed that some policymakers believe conditions are ripe for an imminent rate hike, with one predicting a move "in the near future."

Current Yield Status

As of 9:09 am CET, the 10-year Japan government bond return increased by 1.9 basis points to 1.109%.