Japanese bond yields hit 16-year high

Open the Editor’s Marking Free

Rulla Khalaf, the FT editor, chooses its preferred stories in this week’s news.

Thursday’s 10-year loan expenses have risen to 16 years old, as Tobil has joined the global bond sales, which has taken place in Germany to spend more on defense.

The yield of 10-year-old government bonds of Japan increased by 0.06 percentage points, reaching 1.5 percent, the highest level of 2009. JGB rose almost 0.4 percentage points since the beginning of 2025.

Wednesday saw Germany The largest increase in borrowing costs in 28 years As its bonds were sold between political parties to spend hundreds of billions of euros on defense and infrastructure.

The increase in German bonds comes from growing yields in other countries, including Great Britain, the government is planned to increase fiscal expenses.

Asian traders said that the move was strictly provided, and it is difficult to find out who is with sale, as well as large banks and institutions at the end of the Japanese financial year.

“It’s a similar story around the world, a small infection from Germany,” said the macro strategist.

Stronger than expected economic growth and high inflation “The direction of Japan”, and higher inflation also increased market expectations of more than Japan’s bank.

BoJ has risen interest rates twice last year, as it is trying to normalize monetary policy after years after ultra-low.

The elimination of Threshold is followed by a steady increase in JGB from the beginning of 2025 and comes, as Japanese inflation continues to exceed 2% of the Central Bank.

The speech on the shores of Japan’s Deputy Chief of Police on Wednesday was highlighted, the underlined uncertainties in the prospect of Japan’s interest rates and the JGB market.

The speech, which touched upon the current state of the world economy, pointed out geopolitical tensions as one of the factors that could “influence both economic activities and prices.”

Some traders have started to bet that BOJ will raise interest rates at the end of March. Most of the economists, however, continue to predict the next growth, will be in July.

On Thursday, Yen was stable in Tokyo’s morning, hovering about 149.2 in front of the US dollar. Japanese shares got up in the morning with a wide topic benchmark to rise 1.2 percent.

The shares of the two largest defensive manufacturers of Japan, Mitsubishi Heavy and Kawasaki, have grown by 10% and 9.8 percent, respectively, respectively. Japan will further increase its military spendingA number