Key 10-Yr JGB Yield Hits 27-Year High of 2.230 Pct

Jiji Press

11:07 JST, January 19, 2026

Tokyo, Jan. 19 (Jiji Press)—The benchmark 10-year Japanese government bond yield, the country’s key long-term interest rate, rose to 2.230 pct in Tokyo interdealer bond trading Monday morning, reaching its highest level since February 1999.

The rise came amid concerns that Japan’s fiscal health would deteriorate further under the administration of Prime Minister Sanae Takaichi following an anticipated election for the House of Representatives, the lower chamber of the country’s parliament.

A sense of caution grew among market participants that Japan may move to issue more JGBs, given that many major political parties will likely call for a consumption tax cut as part of their Lower House election campaign pledges. On Sunday, Shunichi Suzuki, secretary-general of the ruling Liberal Democratic Party, indicated that the party is open to including in its campaign platform a plan to temporarily reduce the consumption tax rate to zero for food products.

Meanwhile, Japan’s benchmark Nikkei 225 stock average briefly gave up over 800 points in Monday’s morning trading, partly reflecting the yen’s strength against the dollar.

In Tokyo currency trading, the dollar stood at ¥157.47-47 at 10 a.m., down from ¥158.16-17 at 5 p.m. Friday.