Japan's 10-Year Bond Yield Nears 2.44%, Closest to 17-Year High, as BOJ Tightening and Fiscal Spending Collide

Japan's 10-year government bond yield has climbed near 2.44%, approaching a 17-year high. The Bank of Japan raised its policy rate to 1% in mid-June 2026, while Prime Minister Sanae Takaichi's fiscal expansion agenda has added upward pressure on borrowing costs. The twin forces of monetary tightening and deficit spending are pushing yields higher simultaneously.