Long-term JGB yields rise toward multi-decade highs as inflation signs mount
TLT•Japanese long-term government bond yields climbed toward multi-decade highs as inflation signals and global bond-market volatility mounted. The 10-year yield rose 0.5 basis point to 3.100%, while the 30-year yield gained 4 basis points to 4.21%.
1. Long-term yields climb
The 10-year Japanese government bond yield rose 0.5 basis point to 3.100%, near the 30-year high of 3.115% touched last week. The 20-year yield advanced 1.5 basis points to 3.955%, and the 30-year yield gained 4 basis points to 4.21%, on track for a record high close. The 40-year yield rose 5.5 basis points to 4.275%, while the two- and five-year yields each fell 1.5 basis points.
2. Inflation and rate outlook
Tokyo's annual core inflation accelerated in September at its fastest pace in 10 months. Investors weighed the Bank of Japan's shift toward preemptive tightening after last month's rate hike to 1.25%; market pricing pointed to a likely December hike rather than October. Economist Takayuki Miyajima said expectations that the central bank would accelerate rate hikes had not completely faded, citing high crude oil prices and rising food costs.
