Japan's 10-Year Bond Yield Hits 30-Year High as Yen Swings After US Intervention
Updated
Updated · CNN · Sep 22
Japan's 10-Year Bond Yield Hits 30-Year High as Yen Swings After US Intervention
3 articles · Updated · CNN · Sep 22
Summary
Japan’s 10-year government bond yield has climbed to a 30-year high, lifting borrowing costs as investors absorb persistent inflation, two BOJ rate hikes this year and concern over Prime Minister Sanae Takaichi’s tax-cut and spending plans.
The yen is still fluctuating after a late-July joint US-Japan intervention that followed its weakest level against the dollar in 40 years, with Washington trying to prevent disorderly moves in either direction.
Treasury Secretary Scott Bessent’s support for the yen is tied to US market risk: analysts say a weaker yen could force Japan to sell more dollar assets, including Treasuries, after cutting holdings in May, June and July.
A sharply stronger yen carries its own threat by unwinding yen-funded carry trades, potentially pushing investors to dump stocks and US Treasuries as Japan’s rates rise.
Those cross-currents put Japan at the center of global markets ahead of Tuesday’s expected Trump-Takaichi meeting in New York, underscoring how Japanese bond and currency swings can reverberate through US yields and worldwide capital flows.