Economist: Japan's 10-Year Government Bond Yield May Rise to 3.1% in the Second Half of FY2027

Odaily Planet Daily News According to economists at Daiwa Institute of Research, Japan's 10-year government bond yield is expected to rise to around 3.1% in the second half of fiscal year 2027. Fiscal year 2027 ends in March 2028. They stated that the impact of the Bank of Japan's interest rate hike and its bond purchase reduction plan could further drive bond yields higher. The economists also noted that if Prime Minister Sanae Takaichi's expansionary fiscal policy intensifies market concerns over inflation, and if the scale of government bond issuance might increase, leading to a worsening supply-demand imbalance, yields have further room to rise. Affected by falling oil prices, Japanese government bond yields declined on Monday. The 10-year Japanese government bond yield was last down 7 basis points to 2.690%. (Jin Shi)