Archive · 19 Dec 2025
Japan's 10-year bond yield breaks 2% ceiling
The price of borrowing money for the Japanese government over 10 years has gone up to 2.015%.
This is the highest it's been since 1999.
The Bank of Japan, which controls interest rates, raised its main rate to 0.75% and said it might raise rates more in the future.
People are also guessing that the new government might spend a lot of money to help the economy.
This has made the value of the yen go down compared to the dollar.
The Bank of Japan is trying to control inflation while also making sure the economy keeps growing.
The 10-year Japanese government bond (JGB) yield rose to 2.015%, breaking the 2% ceiling for the first time since 1999.
The Bank of Japan (BOJ) raised its key interest rate to 0.75% and signaled further tightening.
Market speculation about a potential fiscal stimulus package under the new government contributed to the rise in yields.
The yen fell sharply, with the dollar rising nearly 1.2% to 157.365 yen.
Analysts note that the real interest rate in Japan remains extremely negative at 2.2%.
- Who
- Bank of Japan (BOJ), Japanese Government
- What
- 10-year Japanese government bond (JGB) yield rose to 2.015%, breaking the 2% ceiling
- When
- December 19, 2023
- Where
- Japan
- Why
- BOJ raised the key interest rate to 0.75% and signaled further tightening, along with market speculation about fiscal stimulus
- Yield
- 2.015%
- Highest Level Since
- August 1999
- Key Interest Rate
- 0.75%
- BOJ Governor
- Kazuo Ueda
- Prime Minister
- Sanae Takaichi
- Real Interest Rate
- -2.2%
- Dollar-Yen Exchange Rate
- 157.365 yen