Japanese and German government bond yields climbed sharply on Thursday, with Japan’s 10-year yield reaching its highest level since 2009 amid a broader market sell-off early this week.
What Happened: Germany’s 10-year Bund yield jumped approximately 28 basis points to 2.76%, reaching its highest level since October 2023. This marks the largest sell-off in German government bonds since the months following the Berlin Wall’s fall, driven by expectations of increased spending, according to Trading Economics.
The yield on Japan’s 10-year government bond surged above 1.5% Thursday, tracking a rally in European bond yields after Germany announced plans for a €500 billion ($540.18 billion) infrastructure fund and proposals to overhaul borrowing rules.
In February, Bank of Japan Deputy Governor Shinichi Uchida stated that the central bank would consider further interest rate …
