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 predict that Japan's 10-year government bond yield is expected to rise to approximately 3.1% in the second half of fiscal year 2027, which ends in March 2028. They stated that the Bank of Japan's interest rate hikes and bond-buying reduction plan could further drive bond yields higher. The economists also noted that if Prime Minister Takayuki Sanae's expansionary fiscal policy intensifies market concerns about inflation, and if the scale of government bond issuance increases, leading to a worsening supply-demand imbalance, there is further upside potential for yields. Affected by falling oil prices, Japanese government bond yields declined on Monday. The 10-year JGB yield was last down 7 basis points to 2.690%.