Economist: Japan's 10-year government bond yield may rise to 3.1% in the second half of fiscal 2027

According to Odaily, economists at Daiwa Institute of Research said Japan's 10-year government bond yield is expected to rise to around 3.1% in the second half of fiscal 2027. Fiscal 2027 ends in March 2028. They said the impact of the Bank of Japan's interest rate hike and bond purchase reduction plan could push bond yields higher. The economists also noted that if Prime Minister Ishiba's expansionary fiscal policy heightens market concerns about inflation, and if the size of government bond issuance may increase, leading to a worsening of supply-demand imbalances, there is further upside potential for yields. Affected by falling oil prices, Japanese government bond yields fell on Monday. The 10-year Japanese government bond yield was last down 7 basis points to 2.690%. (Jin Shi)