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Japan's long-term interest rate climbed to 2.58%, marking its highest level in approximately 29 years. The rise is mainly attributed to increased crude oil prices amid uncertainties in US-Iran conflict resolution talks.

Japan's Long-Term Interest Rate Increase and Causes

On May 13, the 10-year Japanese government bond yield, a key indicator in Japan's bond market, rose to 2.58%. This marks its highest level in approximately 29 years since July 1997. According to Japan Securities Dealers Association, this increase in interest rates is closely linked to global crude oil price trends.

International Instability and Inflation Concerns

The uncertain outlook for the United States and Iran conflict resolution talks has increased volatility in global oil markets. Crude oil futures prices are hovering above $100 per barrel, and concerns that these rising oil prices could lead to domestic inflation in Japan have prompted a sell-off in government bonds, pushing long-term interest rates higher.

*Source: NHK World-Japan (2026-05-13)*

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