Back

Japanese Bond Futures Rebound as Long-Term Yield Reaches 1.965%

Japan’s bond market saw further upward movement in ultra-long maturities, adding to pressure on the Bank of Japan amid multi-decade yield highs.

Summary

Japan’s 30-year bond yield rose 1.5 basis points to 3.395%, while the 40-year yield increased 3 basis points to 3.720% on December 10. These gains in ultra-long maturities follow recent rises in shorter-term yields, including the 10-year yield reaching 1.965% on December 8 — its highest since June 2007. The sustained yield increases across all maturities are intensifying market speculation that the Bank of Japan may review its ultra-loose monetary policy.

Terms & Concepts
  • Long-term yield: The interest rate on government bonds with longer maturities, reflecting market expectations for future economic conditions.
  • Bank of Japan (BOJ): Japan’s central bank, responsible for monetary policy and maintaining financial stability.
  • Yield curve: A graph showing the relationship between bond yields and maturities, often used to gauge market sentiment and economic outlook.