Against the backdrop of a global wave of rising interest rates, upward pressure on long-term interest rates is said to be steadily intensifying. Inflation risks stemming from higher energy prices and concerns over deterioration in the fiscal balance are said to be increasing the term premium and uncertainty over monetary policy.
The impact of rising interest rates globally is said to be steadily increasing upward pressure on long-term interest rates. Rising inflation risks and concerns over deterioration in the fiscal balance are said to be driving an expansion of the term premium, an additional interest-rate premium.
The Bank of Japan has reportedly consistently pursued monetary policy that lagged the yield curve, encouraging higher inflation expectations to contain the risk of a return to a deflationary environment. Growing uncertainty over future policy operations is also said to be affecting interest-rate trends.