Overview
- The benchmark 10-year government bond yield touched 2.635% intraday and ended at 2.630%, setting a multi-decade closing high.
- A Bank of Japan policy board member’s remarks heightened expectations for sooner rate hikes, prompting more selling of government bonds.
- Rising oil prices and higher U.S. Treasury yields added pressure as traders pulled back expectations for quick Federal Reserve rate cuts.
- Higher long-term rates raise costs on fixed-rate mortgages and corporate loans, though depositors may earn more interest on savings.
- Yields have climbed for months, rising from the low 1.6% range last fall to the mid‑2% range, marking a sharp shift after years of very low rates.