Japan 10-Year Yield Hits 2.9%, Highest in Nearly 29 Years
- 10-year JGB yield briefly hit 2.9%, highest since Nov 1996
- BOJ normalisation and heavy bond supply drive rates up
- Higher rates lift mortgage and corporate borrowing costs
- Deposits and bonds now offer meaningful yield again
- A turning point for anyone borrowing or buying in yen
Japan's benchmark 10-year government bond yield touched 2.9% on the 9th, the highest since November 1996. For readers used to a zero-rate Japan, the number alone forces a reset. Long-term rates are the foundation of nearly every financial price: as they rise, mortgages, corporate bonds and insurance yields all follow. Two forces are stacking up-the Bank of Japan's normalisation path and heavy government bond supply amplified by Middle East-driven inflation expectations. The last time yields reached here was 1996, meaning markets are repricing Japan from its deflationary lost decades back toward a normal economy with inflation and positive rates. For anyone planning to buy property or borrow in yen, recalculate repayments assuming further hikes; for savers, Japanese deposits and bonds finally offer real yield. Watch the BOJ's language, bond auction demand, and whether banks lift mortgage benchmarks.