Japanese 10-year government bond yields hit a 26-year high.

On December 22nd local time, in the Tokyo bond market, the yield on the 10-year new government bond, which serves as the benchmark for Japan's long-term interest rates, briefly rose to 2.070%, the highest level since February 1999. The Bank of Japan decided to raise interest rates at its monetary meeting on the 19th. As a result, the market generally believes that the Bank of Japan will continue to push forward with the interest rate hike process in the future, leading to significant selling pressure on long-term government bonds and pushing up the bond yields. At the same time, concerns are growing about the possibility of further deterioration in the fiscal situation under the backdrop of the high Suga's administration advocating for an active fiscal policy, which is also influencing the rise in long-term interest rates.