Japan's 10-Year Bond Yield Expected to Rise to 2.7% Amid Inflation Concerns

Mitsui Sumitomo Trust strategist Katsutoshi Inadome predicts that the yield on Japan's 10-year government bonds is likely to continue its upward trend, potentially reaching around 2.7% at some point this year. According to Jin10, key drivers include concerns over inflation, uncertainties in Japan's fiscal management under the leadership of the current government, and market expectations that the Bank of Japan will maintain its path of interest rate hikes. On Wednesday, yields on Japanese bonds fell across the board as concerns over oil supply eased, with the benchmark 10-year Japanese government bond yield dropping by 4 basis points to 2.225%.