Japan's 10-Year Government Bond Yield Rises to Three-Decade Peak
TLT•Japan's benchmark 10-year yield hits highest since 1996
TOKYO, Aug 18 (Reuters) - Japan's benchmark 10-year government bond yield climbed to a three-decade high on Tuesday, driven by rising overseas bond yields and speculation about a near-term Bank of Japan interest-rate increase.
The 10-year JGB yield JP10YTN=JBTC added 2.5 basis points to 2.945% early in the trading day, the highest level since September 1996. Other cash bonds had yet to trade as of 0000 GMT.
Yields rise when bond prices fall.
Global inflation worries and BOJ tightening expectations lift yields
Benchmark 10-year JGB futures declined 0.19 yen to 125.97 yen.
Bond yields have risen globally as inflation worries have intensified with oil prices climbing while peace talks in the Middle East remain at a stalemate.
Meanwhile, expectations have been mounting for the BOJ to raise rates at its next policy meeting in September.
Comments from central bank officials have turned increasingly hawkish, and Reuters and other media have reported that the policy board may pursue more aggressive tightening than it has to this point.
