Economist predicts Japanese 10-year treasury yield may rise to 3.1% in the 2027 fiscal year.

Odaily Planet Daily reports that economists from Daiwa Total Research expect Japan’s 10-year government bond yield to rise to approximately 3.1% in the second half of fiscal year 2027, which ends in March 2028. They noted that the impact of the Bank of Japan’s interest rate hikes and quantitative tightening could further push bond yields higher. The economists also stated that if Prime Minister Hayashi’s expansionary fiscal policy intensifies market concerns about inflation, and if increased government bond issuance worsens supply-demand imbalances, yields could rise further. On Monday, Japan’s bond yields fell due to declining oil prices. The yield on Japan’s 10-year government bonds recently declined by 7 basis points to 2.690%. (Jin10)