Japan's bond yields hit highest level since the '90s after central bank rate hike
Japan's 10-year government bond yield just shot up to 2.1%—a level not seen since 1999—after the Bank of Japan raised its key interest rate to 0.75%.
It's the highest rate in decades as Japan tries to get inflation under control and boost its economy.
Why should you care?
This could shake up global investing.
Investors who usually borrow cheap yen to buy things like US stocks, Treasurys, or even Bitcoin might rethink their plans.
Plus, Japanese pension funds and insurers may now prefer local bonds over foreign ones, which could mean less demand for US and European debt.
What's driving all this?
Inflation is finally picking up in Japan, so the central bank is acting.
Governor Kazuo Ueda says they're more confident about hitting economic targets—which hints at more hikes ahead.
The yen has dropped to its lowest value since 1990, making imports pricier for everyone in Japan.
The BOJ expects a brief slowdown but sees recovery ahead as food prices ease by mid-2026.