Japanese and German government bond yields climbed sharply on Thursday, with Japan’s 10-year yield reaching its highest level since 2009 amid a broader market sell-off early this week.
What Happened: Germany’s 10-year Bund yield jumped approximately 28 basis points to 2.76%, reaching its highest level since October 2023. This marks the largest sell-off in German government bonds since the months following the Berlin Wall’s fall, driven by expectations of increased spending, according to Trading Economics.
The yield on Japan’s 10-year government bond surged above 1.5% Thursday, tracking a rally in European bond yields after Germany announced plans for a €500 billion ($540.18 billion) infrastructure fund and proposals to overhaul borrowing rules.
In February, Bank of Japan Deputy Governor Shinichi Uchida stated that the central bank would consider further interest rate hikes if economic forecasts are met. Uchida…
