Japan's 10-year bond yield hits highest point since 2007—what's going on?
Japan's 10-year government bond yield just jumped to 1.98%, the highest it's been in 18 years.
This is mostly because the country's next budget could top ¥120 trillion ($774 billion), which has people worried about how much debt Japan is taking on.
Plus, there are growing expectations that the Bank of Japan might raise interest rates soon, adding even more pressure.
Why investors (and markets) are on edge
With all this uncertainty, investors are getting cautious.
Katsutoshi Inadome from Sumitomo Mitsui Trust Asset Management pointed out that big government spending is making folks nervous about Japan's finances.
The recent selloff in bonds and a cool response to the central bank's buying efforts show how jittery things are right now.
Shorter-term bonds are also seeing higher yields, and the market is focusing on what signals Ueda will drop on future hikes at his post-meeting news conference—so everyone's watching what happens next.