Japan’s Bond Slump Highlights Policy Challenges, Strategists Say

The recent surge in Japanese bond yields signals a critical juncture for the Bank of Japan, which has maintained ultra-low interest rates for years. As inflationary pressures mount, the central bank faces a dilemma: act decisively to stabilize the bond market or risk undermining investor confidence. This scenario underscores the delicate balance between fostering economic growth and maintaining financial stability.