Japan's 10-Year Bond Yield Tops 3% for First Time in 30 Years

Japan's 10-year government bond yield climbed above 3% during the latest session, a level last seen 30 years ago. The move underscores how far Japanese borrowing costs have risen after years near zero. The yield jump came alongside comments from Japanese official Katayama that Japan and the United States agreed to keep coordinating on the yen. Rising yields at home can pull capital back from overseas markets and change the calculus for Japanese investors who have long bought foreign bonds and stocks for higher returns. What remains unresolved is how the Bank of Japan responds if yields keep climbing. A faster rise raises borrowing costs for the government and companies, and could accelerate the unwind of yen-funded trades elsewhere.