Japan's benchmark 10-year government bond yield reached 3% on September 1, the first time this level has been achieved since September 1996. ^[1] Japanese bond yields have reached their highest level in 30 years. ^[2] The yield on Bloomberg's global government bond index rose for a fourth consecutive session to 3.72%, its highest level since mid-2008. ^[3] The US 10-year Treasury yield rose approximately 3.4 basis points to 4.79%, its highest level since January 2025, while the 30-year yield approached 5.30%. ^[4] Japan's two-year government bond yield climbed to 1.746% on Monday, marking its highest level in more than 31 years. ^[5] Japan's national debt exceeds 200% of gross domestic product, raising concerns that planned tax cuts and spending could worsen the financial position. ^[6] Markets have priced in a near certainty that the Bank of Japan will raise interest rates at its meeting in September. ^[7] The Bank of Japan ended its negative interest rate policy in 2024, marking a shift from borrowing costs that had remained near zero for many years. ^[8] The upward momentum in yields is supported by inflationary trends driven by corporate profits and wage increases. ^[9] The global bond sell-off began last week after US Federal Reserve Chair Kevin Vorš reiterated his determination to curb inflation, with additional pressure from rising energy prices following new Middle East conflicts. ^[10] Japanese 10-year bond yields reached 3.0%, a maximum not seen since 1996, and UK 30-year yields climbed to 5.89%, a level not observed since 1998. ^[11] Market futures now assign a 67% probability that the Federal Reserve will raise its rate on September 16, up from 36% the previous week. ^[12]