‘Dear God’: Japan’s borrowing costs hit 30-year high | Protos
The yield that Japan pays for a 10-year loan reached 3% on Tuesday, its most expensive rate since September 1996. The government’s borrowing cost has increased 2,900% in less than five years. Originating a loan of the same duration in early 2022 cost the sovereign just 0.1%. Yield on 10-year Japan Government Bonds, 2006-present. Source: Tradingview Japanese government bonds (JGBs) set multi-decade records across their yield curve. The country is paying a 1.81% yield to borrow for two years, 2.26% for five years, 3.8% for 20 years, and 4.18% for 30 years. Only 40-year JGBs are below a multi-decade record, albeit only slightly: 4.28%. That duration set its recent record at 4.4% in May. As the government pays up to bond investors, otherwise hesitant buyers are happy to continue attending auctions. Tuesday’s 10-year JGB auction attracted more than three bids per bond, keeping the rate of bidding in-line with the annual average. Highest cost for Japan to ...