[Japan’s 10-year government bond yields hit a new high since 1996, and the global bond market sell-off swept through Tokyo] September 24th, after Japan ended its Silver Week holiday and the market reopened, Japan’s 10-year government bond yields soared to the highest level since 1996, catching up with the intensifying global bond sell-off. After a three-day market break, the yield on that year rose 10 basis points to 3.075% on Thursday. Treasury bond yields of all maturities also rose across the board, with the 5-year Treasury bond yield rising 9.5 basis points to 2.37%. The Bank of Japan raised its benchmark interest rate on Friday and signaled it may tighten monetary policy further, but traders were disappointed by the lack of clearer guidance on the pace of future action. This leaves Japanese government bond yields exposed to both expectations of further interest rate hikes by the Bank of Japan and the repricing of global long-term borrowing costs. The sell-off was triggered by investors demanding higher compensation for holding Japanese government bonds amid persistent inflation and fiscal concerns.