Japan’s Bond Yields Surge Amidst Expectations of BOJ Interest Rate Hike

Japan’s government bond yields reached a 17-year high in December 2025, signaling market anticipation for an imminent interest rate hike by the Bank of Japan. This surge, driven by expectations of future monetary policy adjustments, has significant implications for global financial markets. The move could further impact inflation control, currency strength, and economic policy as Japan pursues a combination of stimulus efforts and potential tightening.