Japan's 10-year government bond yield rises to three-decade peak

Business Recorder reported that Japan's 10-year government bond yield reached a three-decade high on Tuesday. The yield rose 2.5 basis points to 2.945 per cent in early trading, its loftiest level since September 1996. The move came as yields elsewhere climbed and traders bet on an interest-rate increase by the Bank of Japan in the near term.

Rising bond yields mean bond prices are falling. Futures tied to the benchmark 10-year bond dropped 0.19 yen, to 125.97 yen. Globally, yields have moved higher as concern about inflation deepened, with oil prices rising and peace talks in the Middle East stuck in a stalemate.

Expectations are building that the Bank of Japan will lift rates at its September policy meeting, as central bank officials have sounded increasingly hawkish. According to Business Recorder, citing Reuters and other media, the policy board may tighten more aggressively than it has so far.