Japan's 10-Year Government Bond Yield Hits Record High, Global Liquidity Tightening Pressure Increases

BlockBeats News, April 6th, according to Bitget market data, the yield on the newly issued 10-year Japanese government bond, as a long-term interest rate benchmark in Japan, once rose to 2.400%, the highest level since February 1999.

Japan's long-term interest rates have officially bid farewell to decades of ultra-low interest rates and are accelerating towards monetary policy normalization. This is mainly driven by expectations of a rate hike by the Bank of Japan, input inflation pressure caused by the Middle East conflict pushing up oil prices, and concerns about new bond issuance triggered by the Japanese government's large-scale fiscal spending.

For the global market, Japan, as one of the world's largest creditors, a rise in its yield may lead to a partial reversal of "carry trades" that previously relied on low-cost yen financing, increase global liquidity tightening pressure, and pose a potential volatility impact on risk assets such as the stock market and crypto assets.