Japan's 10-Year Yield Nears 17-Year High as BOJ Rate Hike and Fiscal Spending Clash

Japan's 10-year government bond yield has risen 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 adds pressure on borrowing costs. Monetary tightening and deficit spending are pushing yields higher together.