Japan 10-Year Yield Hits 17-Year High

Japan’s 10-year government bond yield climbed above 1.62% on Tuesday, its highest level since 2008, as investors ramped up bets on further Bank of Japan interest rate hikes. Speaking at the Federal Reserve’s Jackson Hole conference on Saturday, BOJ Governor Kazuo Ueda said wages in Japan are expected to rise further amid a tightening labor market, signaling growing confidence that conditions for another rate increase are coming together. The BOJ has paused its rate hike cycle in recent months, reflecting concerns over the impact of US tariffs on Japan’s export-driven economy. Still, at its July meeting, the central bank left rates unchanged while raising its inflation forecasts and delivering a more upbeat economic outlook. Traders are also watching a series of domestic economic releases later this week, including industrial production, retail sales, and consumer confidence data, for further policy signals.