macro

Japanese bond yields climb back after AI-driven slump

Japan's 10-year government bond yield rose to 2.7% as yields recovered from last week's plunge, Reuters reports. Traders watch BOJ rate hike expectations.

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what happened

Japanese government bond yields rose on Monday, partly reversing last week's drop as a sharp selloff in AI-related shares drove investors into haven assets, Reuters reported.

The benchmark 10-year JGB yield climbed 6.5 basis points to 2.7%. The 5-year yield gained 5.5 bps to 2.1%, while the 2-year yield, the most sensitive to BOJ policy rates, held steady at 1.725%. Japan's Nikkei gauge rallied on Monday after a 6% plunge on Friday. US Treasuries also fell, as a payrolls report lifted expectations for a Federal Reserve rate hike at its December meeting.

why it matters

The Bank of Japan has kept its policy rate at 1.25% since a September hike and has taken a more hawkish tone, with expectations firming toward a December increase to 1.5%. Governor Kazuo Ueda said inflation should stay around the 2% target but acknowledged some upside risks. Uncertainty over AI-related investment remains high, so yields stay sensitive to equity market moves and rate expectations.

market impact

JGBs: yields rising and prices falling as BOJ tightening expectations build

  • Japanese government bonds (JGB) pressure down — higher yields mean lower bond prices

tags

instruments

JGB 10YJGB 5YJGB 2YNikkei 225US TreasuriesBOJ policy rate

sources

  1. Japan bond yields rise after plunge on AI uncertainty — Reuters, 9 November 2026 at 00:57 UTC

prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.

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