Long-term interest rates neared the 3% milestone, with the yield on newly issued 10-year Japanese government bonds rising to 2.945% on the 18th. Stock prices fell sharply against a backdrop of higher overseas interest rates.
On the 18th, the yield on newly issued 10-year Japanese government bonds, a benchmark for long-term interest rates, reached 2.945%, bringing the historic 3% milestone within sight. Bond prices have fallen, with the market reportedly reaching levels not seen in about 30 years. This heightened awareness of rising long-term interest rates in financial markets. Rising interest rates are said to affect the allocation of funds in the market and demand for long-term bonds.
The trend toward higher interest rates in overseas markets has been cited as the background, and reports say the global move toward interest-rate normalization is affecting sentiment in financial markets. Calls to closely monitor the impact on asset prices, alongside domestic interest-rate trends, are growing.