- Japan's 10-year government bond yield rose 8 basis points to 3.055%, the highest since August 1996, while the 30-year yield rose nearly 7 basis points to 4.134%.
- The rise in Japanese bond yields tracked higher U.S. Treasury yields, with the 10-year U.S. yield surging to a 19-year high.
- UOB attributed the sell-off to rebounding oil prices, stronger-than-expected U.S. PMI data, and weak demand at a $70 billion 5-year Treasury auction that pushed 5-year yields above 5%.
- Earlier in September, Japan's benchmark borrowing costs reached a three-decade high after U.S. Treasury Secretary Scott Bessent signaled he expects Tokyo and the Bank of Japan to support the falling yen.
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“The benchmark 10-year JGB yield rose 8 basis points to 3.055%, the highest since August 1996.”
“The sell-off was driven by rebounding oil prices, stronger-than-expected US PMI data, and weak demand at a US$70 billion 5-year Treasury auction, which pushed 5-year yields above 5%," UOB said in a note.”