- The benchmark 10-year JGB yield rose on Tuesday despite the new 10-year coupon topping 3% for the first time in 30 years.
- Investors remain uneasy over inflation tied to the Middle East conflict and concerns about Japan's fiscal trajectory, keeping upward pressure on yields.
- Government debt concerns are driving bond yields higher around the world, not just in Japan.
Quotes
“The benchmark Japanese government bond yield rose on Tuesday despite the coupon rate on new 10-year JGBs topping 3% for the first time in three decades, as concerns over government debt drive rates higher around the world.”
“investors remain uneasy over inflation due to the protracted conflict in the Middle East and concerns about the country's fiscal trajectory.”