Japan's 10-year government bond yield has surged to over 1.61%, its highest level since 2008, raising concerns about the country's fiscal policies. This rise follows a poorly received auction for 20-year government debt, indicating investor worry over excessive government spending and tax cuts. The increase in bond yields could negatively impact global markets, potentially leading to reduced demand for risk assets, including cryptocurrencies and equities. Veteran lawmaker Taro Kono has suggested that the Bank of Japan should raise interest rates to address the weak yen and related fiscal issues. Previously, ultra-easy monetary policies had kept yields low, but recent events challenge this trend, possibly affecting U.S. Treasury notes and tightening global financial conditions.

Source 🔗