Why Japan's long-term bond yields have surged to multi

Japanese government bond yields have been notching fresh highs as investors price in persistent inflation, tighter monetary policy, as well as fiscal uncertainty. Japan's 30-year bond yield notched a record high on Wednesday to hit 3.286%, surging more than 100 basis points this year, while yield on the 20-year debt is at its highest since 1999 at 2.695%, up 80 basis points, LSEG data showed. The benchmark 10-year bond yield is hovering at its highest since 2008 at 1.633%, over 50 basis points higher in 2025. The 40-year yield is up around 90 basis points year-to-date at 3.506%. Rising yields translate directly into higher borrowing costs for the government, corporates and down the economy — particularly worrisome for Japan that is seeing weak growth and facing headwinds from U.S. tariffs,