Japan's Borrowing Costs Approach 17-Year High as Central Bank and Government Pull in the Same Direction

Japan's 10-year government bond yield — the interest rate the government pays to borrow for a decade — has climbed near 2.44%, close to a 17-year high. The central bank raised its key rate to 1% in mid-June 2026, and the prime minister's spending plans are also pushing borrowing costs up. Both forces are working together.