Japan’s 10-year government bond yield surpasses 3% for the first time in 30 years

Siebert Financial Chief Investment Officer Mark Malek stated in a report that the rise in the US 10-year Treasury yield to 5% is not due to problems in the US economy, but rather is accompanied by a synchronous increase in yields across various global bonds. He specifically pointed out that Japan’s 10-year government bond yield has surpassed 3% for the first time in 30 years. He said: “Japan, once the country that spent a generation showing the rest of the world what zero interest rates looked like, has now also changed.” Malek believes: “When all long-term sovereign bond yields in developed countries are being repriced in the same direction at the same time, the market is not making a judgment on any specific borrower. The market is merely recalling something it has deliberately forgotten over the past fifteen years—that lending money in ten-year terms to any entity is a risk, not an automatic convenience.”