Japan's 10-year government bond yield has reached a level not seen since 2008, leading to varied reactions in the market.
Historic High in Bond Yields
On Monday, Japan's 10-year bond yields hit a peak not seen since the 2008 crisis. Investors view this as a signal of market confidence and expectations of further interest rate hikes by the Bank of Japan.
Impact on Japan’s Economy
The surge in yields raises concerns among residents about a potential downturn. The increase in the interest rate to 0.5% already pressures the market, and further hikes may lead to higher borrowing costs for businesses and consumers.
Expert Opinions and Forecasts
According to Tomoya Asakura, CEO of SBI Global Asset Management, yields could reach 2%, impacting Japanese export companies and increasing the interest burden for the Bank of Japan on holding bonds.
Despite varied expert opinions, many Japanese citizens fear further economic difficulties. High rates might lead to a financial crisis similar to 2008.
