Another GLOBAL rise in long term interest rates that started AGAIN in Japan

To highlight AGAIN that the interest rate rise is global, last week the 10 yr JGB yield was up 8 bps, its 40 yr yield higher by 13 bps, the Australian 10 yr yield jumped by 29 bps, The German 10 yr bund yield was up by 17 bps, the 10 yr UK gilt yield was up by 29 bps, the Italian 10 yr yield was up by 15 bps and the US 10 yr yield as of this writing is higher by 32 bps.

This is on fully display today too as the Japanese 10 yr JGB yield rose another 3.5 bps to near .88% on a story over the weekend in the Nikkei business daily that the BoJ meeting at the end of the month will be discussing a further tweak to YCC as the 10 yr yield gets closer to the upper end of its bound of 1.00%. With the yen back at 150, I'm sure a debate on getting out of negative rate policy will also be part of the discussion. Also, the 40 yr JGB yield, the part of their yield curve that is least influenced by BoJ policy, jumped 8 bps to 2.17% overnight.

In turn, European bond yields are jumping with the German 10 yr yield nearing 3.00%, a level last seen in 2011. The Italian 10 yr yield is close to 5.00% at 4.95%, the highest since 2012. The US 10 yr yield is finally at 5.00%.