Summary: Japan’s 10-year government bond yield reached its highest level since 2008 due to concerns about fiscal spending ahead of the upper house election. The discussion of consumption tax cuts by politicians has raised doubts about fiscal discipline, given Japan’s high public debt. Additionally, underlying factors like easing inflation and supply-demand imbalances in the bond market could prompt the Bank of Japan to revise its inflation forecast and accelerate the timeline for its next rate hike.

Link: https://www.cnbc.com/2025/07/15/japan-bond-yields-surge-as-fiscal-fears-mount-ahead-of-election.html