A Bank of Japan report said acceleration in core inflation and other shifts in economic fundamentals may be behind the recent rise in long-term yields. It said that as the Bank of Japan reduces JGB purchases, JGB market functioning has visibly improved, though the bank's still-large JGB holdings continue to compress the term premium.

2026-08-04

A Bank of Japan report said acceleration in core inflation and other shifts in economic fundamentals may be behind the recent rise in long-term yields. It said that as the Bank of Japan reduces JGB purchases, JGB market functioning has visibly improved, though the bank's still-large JGB holdings continue to compress the term premium.