Global Market: Japanese bond yields climb to multi-decade highs amid inflation and fiscal concerns

Japanese government bond yields surged to multi-decade highs with the 20-year JGB yield at 3.85 percent (highest since July 1996) and the 30-year yield at 3.97 percent, driven by persistent inflation and an ambitious 370 trillion yen (about 2.28 trillion dollars) public-private investment plan through fiscal 2040. Markets also reacted to reports that Tokyo is considering revising the monetary policy language in its economic blueprint, with investors interpreting the government's strategy as potentially pressuring the Bank of Japan to delay rate hikes. Rising global yields and yen weakness near 162.33 per dollar typically weigh on emerging market flows including Indian equities, making this a key watchpoint for FII positioning.