Japan Bond Selloff Deepens As 30-Year Yield Breaks Every Record Since 1999

Japan’s 30-year government bond yield rose to a record 4.235% on Monday, the highest since the bonds were first sold in 1999. It first crossed 4% only in May. The Bank of Japan said heavy bond issuance by AI companies is pushing long-term rates higher, while Deputy Governor Shinichi Uchida described AI as a “big positive demand shock” lifting activity and prices. Last week’s strong Japanese inflation reading has added to the selloff, and traders are now weighing another rate hike. The BOJ says it will track conditions closely, and investors are awaiting Prime Minister Sanae Takaichi’s policy speech.