Japanese 10-Year Bond Yield Rises to 1.515% Amid Weak 5-Year Auction; BOJ Hike Priced by October, Germany 30-Year at 3.33%, UK 10-Year Gilt at 4.708%

Japanese government bond yields have been rising across various maturities in mid-August 2025. The 10-year Japanese Government Bond (JGB) yield increased by 1.5 basis points to 1.515%, while the 5-year JGB yield rose by 3.5 basis points to 1.1%. The 2-year bond yield also climbed to 0.82%, up 0.5 basis points, and the 30-year bond yield edged up to 3.1%. These movements followed a weak demand ratio in the 5-year bond auction, the lowest since 2020, which contributed to a decline in Japanese government bonds. Market participants are pricing in a potential Bank of Japan rate hike by October, with some yields briefly reaching 1.57%. In comparison, Germany’s 30-year bond yield increased by 7 basis points to 3.33%, and its 10-year bond yield reached 2.776%, the highest since March. In the UK, 10-year gilt yields rose by over 6 basis points to 4.708%, marking the highest level since early June. Meanwhile, the US 30-year bond yield remains 109 basis points higher than the 5-year yield, representing the widest spread since 2021.