Japan's benchmark yield on 10-year government bonds has risen to 2.14 percent, marking its highest level since February 1999, according to Japanese media outlets on Tuesday.
The 10-year bond yield serves as a key indicator of long-term interest rates in Japan.
Bond prices and yields move in opposite directions. When investors actively purchase government bonds, prices rise and yields fall. Conversely, when bonds are sold off, prices drop and yields increase.
According to the media reports, the recent spike in bond yields has been driven by Japanese Prime Minister Sanae Takaichi's possible move on dissolving the lower house. Investors believe that the Japanese government may further implement expansionary fiscal policies.
Japan's gross debt has hit a staggering 240 percent of GDP. The implementation of expansionary fiscal policies and large-scale bond issuance by the Takaichi cabinet have continually deepened investors' concerns about the deterioration of Japan's fiscal situation.
Japan's 10-year gov't bond yield hits 27-year high: media
Japan's 10-year gov't bond yield hits 27-year high: media
