Japan's 10-year gov't bond yield hits 26-year high amid rate hike expectations

Japan's benchmark 10-year government bond yield surged to its highest level in over 26 years on Monday, reflecting growing market expectations of continued interest rate hikes by the Bank of Japan (BOJ) and concerns over the country's deteriorating fiscal outlook.

The yield on the newly issued 10-year Japanese government bond briefly climbed to nearly 2.1 percent during trading, its highest point since February 1999.

Analysts attribute the surge to two key factors: mounting speculation that the BOJ will maintain its tightening trajectory in response to persistent inflationary pressures, and growing unease over Japan's deteriorating fiscal outlook.

The bond market volatility spilled over into foreign exchange markets, where the yen weakened sharply. The Japanese currency fell to as low as 157.5 yen per U.S. dollar on Monday.

Japan's 10-year gov't bond yield hits 26-year high amid rate hike expectations

Japan's 10-year gov't bond yield hits 26-year high amid rate hike expectations

Gold futures and spot prices surged to record levels this week, driven by rising geopolitical tensions and expectations of a U.S. Federal Reserve rate cut.

Gold prices on the New York Mercantile Exchange (NYMEX) reached new historic highs on Sunday. The most actively traded February 2026 gold futures contract briefly surpassed 4,430 U.S. dollars per ounce during intraday trading.

In London, spot gold prices also broke records, crossing the 4,400 U.S. dollars per ounce mark on Monday local time.

According to U.S. media reports, the sharp rally in gold is mainly attributed to intensifying geopolitical tensions and growing market expectations of further interest rate cuts by the Federal Reserve.

Gold prices hit historic highs amid global tensions