The surge in Japanese ultra-long bond yields is expected to support an increase in Japanese government bond allocation.

Jin10 data May 23 news, DBS Group research forex and credit strategist Chang Wei Liang said that the current surge in Japan's ultra-long-term government bond yields should support an increase in Japan's government bond allocations. The yield on Japan's 30-year government bonds has risen from around 2.30% at the beginning of 2025 to 3.20%. Unless Japan's long-term inflation expectations rise by 1% within the next 5 months, the current surge in ultra-long-term Japanese government bond yields indicates a significant increase in the average real interest rates in the Japanese government bond market. This should also encourage the inflow of funds from Japanese asset management companies and further support the recovery of the yen.