Japan’s 10‑Year Bond Yield Reaches 3% Amid Global Sell‑off

Japan’s 10‑year government bond yield climbed to 3 % on Tuesday, the first time since 1996, as a broad‑based global bond sell‑off accelerated by renewed Middle East conflict and oil prices above $91 a barrel. Analysts say the rise reflects expectations of higher interest rates, inflation concerns, and worries about fiscal sustainability in major advanced economies. The surge has prompted a shift in capital flows, with Japanese investors potentially selling foreign assets and repatriating funds, while the higher yields could make carry trades less attractive and pressure other markets to re‑price sovereign debt. The 10‑year JGB auction saw strong bids, suggesting yields may hold near the 3 % threshold for now, but upward pressure could intensify if demand wanes.