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

According to Odaily Planet Daily, economists at Daiwa Institute of Research stated that Japan's 10-year government bond yield is expected to rise to approximately 3.1% in the second half of fiscal 2027. Fiscal 2027 will end in March 2028. They indicated that the Bank of Japan's interest rate hikes and its bond tapering plan could further drive bond yields higher. The economists also noted that if Prime Minister Takashi's expansionary fiscal policy intensifies market concerns about inflation, and the scale of government bond issuance may increase, leading to a worsening supply-demand imbalance, there is further room for yields to rise. Affected by falling oil prices, Japanese government bond yields declined on Monday. The 10-year Japanese government bond yield fell by 7 basis points to 2.690%. (Jin Shi)