Japan's 30-year government bond yield hits record high, with the Central Bank's interest rate hike suspense at its peak.

[Block Rhythm] The Japanese bond market has been a bit restless recently. The 30-year government bond yield has directly surged to an ATH, now rising to 3.405%, with an increase of 1.5 basis points in a single day. Behind this, there are actually two forces at play: one is that inflation has been unable to decrease, and the other is that the market is speculating whether the Central Bank will raise interest rates at the end of this month.

Ueda Kazuo specially came out to express his views a couple of days ago, stating that the upcoming meeting will have a good discussion about interest rate hikes. Once this statement was made, the market's expectations for short-term interest rate hikes were clearly ignited. In contrast, the 10-year government bond remained stable, holding steady at 1.875% without much movement.

In simple terms, it now depends on how the Central Bank weighs the situation – inflationary pressures are present, but raising interest rates will affect the pace of the overall economic recovery. This wave of volatility in the bond market is actually reflecting investors' anxiety about the direction of policy.