Japan 10-Year Yield Tops 3% for First Time Since 1996 as Bessent Signals Yen Support
Updated
Updated · CNBC · Aug 31
Japan 10-Year Yield Tops 3% for First Time Since 1996 as Bessent Signals Yen Support
3 articles · Updated · CNBC · Aug 31
Summary
Japan’s 10-year government bond yield rose 6 basis points to just above 3%, its highest in 30 years, as markets priced in a greater chance of Tokyo and the BOJ acting to strengthen the yen.
Scott Bessent said he expects Japanese authorities to take steps leading to a stronger yen, while a U.S. official said he pressed Tokyo on fiscal sustainability and further BOJ rate hikes.
The yen traded at 160.1 per dollar, above a level many traders see as intervention-sensitive, even after a rare joint U.S.-Japan operation in late July failed to hold earlier gains.
Higher yields also reflected concern over Japan’s upcoming budget and a possible September BOJ hike, with some investors now lifting expectations for the terminal rate above 1.5%.
Global bond markets were already under pressure after renewed U.S.-Iran hostilities revived inflation fears, raising the stakes because any large Japanese Treasury sales could further unsettle world markets.