Japan's 20-Year Bond Yield Hits 3.495%, Highest Since 1997, as Energy Prices Stoke Inflation
Updated
Updated · Bloomberg · May 13
Japan's 20-Year Bond Yield Hits 3.495%, Highest Since 1997, as Energy Prices Stoke Inflation
4 articles · Updated · Bloomberg · May 13
Japan's 20-year government bond yield climbed 5 basis points to 3.495%, breaking above its Jan. 20 peak of 3.46% and reaching its highest level since 1997.
Rising energy prices drove the move, adding to inflation pressure and pushing investors to demand higher yields on longer-dated Japanese debt.
The selloff spread across the curve, with the 10-year yield rising at least 5 basis points to 2.6% and the 30-year yield up to 3.86%.
The jump underscores how inflation concerns are lifting borrowing costs in Japan's bond market even at maturities that had long traded at much lower levels.
As Japan raises interest rates, can its economy handle the world's largest public debt burden?
Is the global AI boom's immense energy demand undermining Japan's fragile escape from decades of deflation?