EconomyHow will a rate increase in Japan affect capital flows in global financial markets?

A potential Japanese rate increase is adding uncertainty to global markets, with concerns that it could trigger renewed bond-market turmoil and reduce demand for risk assets. Tokyo’s push for higher defence spending is raising questions about fiscal discipline. Japan’s 10-year bond yield reached 3.03 per cent this week, its highest level in three decades, while the 30-year yield approached a 30-year high at 4.1 per cent.

Japan rate hikeglobal marketsbond yieldscapital flows

SSouth China Morning Post★★★★☆2026-09-18 01:00Original