10-year JGB yield at 3-decade high

The yield on Japanese 10-year government bonds temporarily climbed to 3.035% on Tuesday. The figure is an important gauge of long-term interest rates.

According to Japan Bond Trading, it is the highest level in roughly 30 years. In the US, rising crude oil futures have driven long-term interest rates higher, temporarily tipping them over 5%.

The US situation is fueling a sell-off of JGBs, which is pushing up the yield.

Market sources say the rise in crude oil futures is also causing inflationary pressure in Japan, which is creating expectations that the Bank of Japan may speed up the pace of its interest rate hikes.