The yield of Japanese 10-year treasury bond bonds hit a new high in nearly 30 years, and the Bank of Japan is under pressure to raise interest rates

The yield of Japanese 10-year treasury bond bonds rose to 2.945%, the highest level in nearly 30 years. The Japanese government has arranged 31 trillion yen for debt repayment, and the Ministry of Finance predicts that the annual debt repayment cost for fiscal year 2029 may rise to 41 trillion yen. Traders expect the Bank of Japan to raise interest rates by 25 basis points twice as early as around January next year, and the policy rate may rise to 1.5%. Mamiya Kazuo stated that the end point of this interest rate hike cycle may reach around 1.75%. The market is paying attention to the personnel adjustment window of the Bank of Japan in 2027, and the Bank of Japan may hope to complete its main interest rate hike action before then.