Japan JGB yields jump to record highs as inflation fears boost Bank of Japan hike expectations

10-year JGB yield hits 2.73% since 1997

Japan’s government bond yields surged across the yield curve as markets increasingly bet the Bank of Japan will tighten policy. The 10-year JGB yield climbed up to 10 basis points to 2.73%, the highest since May 1997, while five- and 20-year yields touched all-time peaks. The move gained traction after data showed Japan’s wholesale inflation rose fastest in three years in April. Additional pressure came from rising US Treasury yields amid global inflation worries.