About this work
Rising Japanese government bond yields in May 2025 reflect monetary normalization, inflation expectations and term premiums in this assessment. A stronger yen, contained credit risk measures and solid auctions support that reading. Private investors absorb supply as the central bank steps back, suggesting an adjustment in market pricing rather than a loss of fiscal confidence.
Cite this work
Jonathan Fortun (2025). Asia Economic Views: Japan Recalibrated: What Rising Yields Really Mean. Institute of International Finance.