Bank of Japan Rate Hike Signal Pushes U.S. 10-Year Treasury Yield to 4.095%

Bank of Japan Governor Kazuo Ueda signaled a possible rate increase later this month, driving Japan's 10-year government bond yield to 1.879% on Dec. 2—the highest close since June 2008, BlockBeats reports. The announcement pushed U.S. 10-year Treasury yields to 4.095% from below 4% mid-last week, as Japan holds approximately $1.2 trillion in U.S. Treasuries as of September. Wall Street analysts warn that rising Japanese bond yields could trigger capital outflows from U.S. assets, potentially disrupting the declining trend in Treasury yields that has supported lower mortgage rates and equity market gains this year.