The yield on Japanese government bonds for a 10-year term reaches its highest level since 2011.

The yield on Japan's 10-year government bonds rose to 1.115% during trading on Friday, reflecting an increase of about 2.95%, marking its highest point since early January 2011. This rise reflects growing market expectations for a more stringent monetary policy from the Bank of Japan. This increase came after official data released this morning showed that inflation growth in the capital city of Japan continued to accelerate in December, moving away from the Bank of Japan's target, which indicates rising inflationary pressures in the country. This may force the Bank of Japan to raise interest rates at the upcoming January meeting. Furthermore, discussions among the Bank of Japan during the last meeting revealed that some monetary policymakers anticipate an imminent increase in interest rates in the near future. The Bank of Japan had maintained the interest rate at 0.25% during the last meeting in December, based on the available evidence at that time not supporting the option to raise rates. However, the Bank of Japan emphasized that it is closely monitoring important data in this regard and will take necessary actions accordingly.