Japan 10 year government bond yield hits 3.075% since 1996
Japan's 10-year government bond yield jumped to 3.075%, a level not seen since 1996, after a global selloff and the Silver Week holidays.
The five-year yield also climbed, with robust US economic data, weak demand at a debt auction, and expectations for further Federal Reserve interest-rate hikes, with rising oil prices adding to inflation concerns, pushing up borrowing costs across the board.
BOJ raises rate, markets jittery
The Bank of Japan (BOJ) raised its key interest rate but didn't give much hint about what's next, making markets even more jittery.
Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management, said the BOJ's rate increase and the lack of a larger move has also fueled concern that the BOJ risks falling behind the curve on inflation.
Meanwhile, Japan might ramp up defense spending to 3.5% of GDP, which could mean big changes for government budgets under Prime Minister Sanae Takaichi.