Japan's 10-Year Yield Hits 30-Year High as Trump, Takaichi Prepare Tuesday Meeting
Updated
Updated · CNN International · Sep 22
Japan's 10-Year Yield Hits 30-Year High as Trump, Takaichi Prepare Tuesday Meeting
3 articles · Updated · CNN International · Sep 22
Summary
Japan’s bond and currency swings have put Tuesday’s Trump-Takaichi meeting in focus, with the 10-year government yield recently reaching a 30-year high and the yen still volatile after July’s joint US-Japan intervention.
Inflation, the Bank of Japan’s second rate hike this year, and investor unease over Takaichi’s tax-cut and spending plans have driven Japanese bond prices down and yields up.
The US is closely watching because Japan is the largest foreign holder of Treasuries; Treasury data showed it cut those holdings in May, June and July, raising concern further selling could lift US borrowing costs.
Yen moves pose a second risk: renewed weakness could force Japan to sell dollar assets to support its currency, while a sharp rebound could unwind yen-funded carry trades and trigger sales of stocks and Treasuries globally.
The episode underscores how tightly US and Japanese markets are now linked, with any sharp move in Japan’s rates or currency likely to ripple through global funding costs and investor portfolios.