Japan's 10-Year Bond Yield Gains 10.5 Basis Points as Treasurys Sell Off

Japanese government bonds fell across maturities on Nov. 11. The 10-year yield reached 2.795%, the five-year yield climbed to 2.195%, and the two-year yield rose to 1.86%.

The move followed a selloff in U.S. Treasurys. Hotter-than-expected U.S. inflation data strengthened bets that the Federal Reserve may need to raise interest rates more aggressively. The U.S. two-year Treasury yield jumped 18 basis points to 4.74%, its biggest one-day rise since April 2025.

The gains reversed a decline in Japanese yields over several preceding trading sessions. Safe-haven demand had increased after a steep drop in U.S. stocks, while traders lowered expectations for further Bank of Japan rate increases, pushing Japanese yields down.

Shinichiro Kadota, head of foreign exchange and rates strategy at Barclays Japan, described the earlier decline as an overshoot and said yields had more room to recover.