Long-term interest rates remained at their highest level in 30 years, reaching 2.990% on the 1st. Higher oil prices stemming from the situation in the Middle East and expectations of a Bank of Japan rate hike have been cited as driving forces.
The yield on newly issued 10-year Japanese government bonds, a benchmark for long-term interest rates, rose to 2.990%, reaching its highest level since September 1996. With yields continuing at 30-year highs, concerns about further increases are intensifying in the bond market.
Market participants broadly believe that higher oil prices stemming from the situation in the Middle East have revived concerns about rising prices and are supporting increases in interest rates globally. Expectations of a Bank of Japan rate hike have also grown after the U.S. Treasury Secretary expressed hopes for Japan to raise interest rates.
Market participants say it is "only a matter of time" before the yield reaches the 3% milestone, and concerns about rising interest rates are intensifying across financial markets. Attention is focused on the Bank of Japan's monetary policy and future interest-rate levels.
The latest move is attracting attention as an indicator of how rising long-term interest rates could affect the global economy and monetary policy in various countries.