Japan may step in if bond yields hit 3.0%–3.5%

Reuters reported July 16 that Japan likely sees 3.0%–3.5% as the danger zone for 10-year government bond yields — the interest rate investors demand to lend Japan money. Cross it, and authorities may buy more bonds to push rates back down. With the central bank's rate at 1.0% and no change expected before October, traders now have a level to push against.