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Japan's 10-year government bond yield, a key indicator of long-term interest rates, rose to 2.425%, reaching its highest level since February 1999, approximately 27 years ago.

Japan's Long-Term Interest Rate Surge

In today's Japanese domestic bond market, the 10-year government bond yield, a key indicator of long-term interest rates, temporarily rose to 2.425%. This marks the highest level in approximately 27 years since February 1999. This increase is attributed to rising crude oil prices following attacks by the United States and Israel on Iran, leading to widespread concerns about inflation in the market and a subsequent sell-off of bonds.

Bank of Japan's Rate Hike Speculation and Market Reaction

Furthermore, speculation that the Bank of Japan will decide on a rate hike at its Monetary Policy Meeting on April 28th and 29th has accelerated bond selling. Market participants stated, "As prices rise, current interest rates are low, leading people to believe that holding government bonds is meaningless, prompting them to sell, which in turn drives up interest rates." This situation is expected to have a significant impact on Japan's future monetary policy and the broader economy.

*Source: YouTube: 日テレNEWS (2026-04-06)*

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