The 10-year Japanese government bond yield hits a new high, increasing global liquidity tightening pressure

Mars Finance news: On April 6, according to market data, the yield on 10-year newly issued government bonds—an indicator of Japan’s long-term interest rates—rose at one point to 2.400%, the highest level since February 1999. Japan’s long-term interest rates have officially bid farewell to the era of ultra-low rates that lasted for decades, and are accelerating toward monetary policy normalization. The move is jointly driven by expectations of a rate hike by the Bank of Japan, input-type inflation pressures caused by the Middle East conflict pushing oil prices higher, and new concerns about bond issuance triggered by large-scale fiscal spending by the Japanese government. For global markets, as one of the world’s largest creditor nations, a rebound in Japan’s yields may partially reverse the “carry trades” that had previously relied on low-cost yen funding, increasing pressure for global liquidity tightening, and potentially affecting volatility in risk assets such as equities and crypto assets.