Reading JGB Yields: On October 26 the 10-Year Was 2.824%, Higher for Longer MaturitiesThe Interest on Money the Country Borrows Is Higher the Longer It Borrows
According to the Ministry of Finance's JGB interest rate data, the yield on the 10-year Japanese government bond on October 26 was 2.824%, down from 3.092% on October 1. The 1-year yield was 1.649% and the 30-year 3.884%, so the longer the maturity, the higher the yield. Based on MOF and BOJ publications, this article explains how to read long-term rates and what to check for borrowing and funding plans.
Key points
- Yields on October 26 (MOF): 1-year 1.649%, 2-year 1.888%, 5-year 2.241%, 10-year 2.824%, 20-year 3.630%, 30-year 3.884%, 40-year 3.900%. The curve slopes upward: the longer the maturity, the higher the yield
- 10-year yield: 3.092% on October 1, 2.923% on the 21st, 2.914% on the 22nd, 2.837% on the 23rd and 2.824% on the 26th. It fell by 0.268 percentage points from October 1 to 26
- The long-term interest rate generally means the yield on the 10-year government bond. Unlike the short-term policy rate set by the BOJ (about 1.25%), it moves daily as bonds are traded. The 1-year yield of 1.649% is above the policy rate guide
- In its September statement the BOJ judged that financial conditions are accommodative, real interest rates remain low mainly in the short and medium term, firms' demand for funds is increasing and financial institutions' lending attitudes are positive
What to do in practice
- Check the latest values in the MOF's daily JGB interest rate data (updated for each reference date)
- Check in your contract whether borrowing is fixed or floating and what benchmark sets the rate, and estimate in your cash-flow table how repayments would change if rates rise
- When you are given rate explanations, compare them on the same maturity and the same fixed or floating basis
When the country needs money, it issues IOUs called government bonds and borrows from many people. The interest rate on them is the 'government bond yield'. According to the Ministry of Finance, on October 26 it was 1.649% for 1 year, 2.824% for 10 years and 3.884% for 30 years. The longer the borrowing, the higher the rate.
Points
- The 10-year yield fell from 3.092% on October 1 to 2.824% on October 26, which is a drop of 0.268 percentage points
- When the news says 'long-term interest rate', it usually means the yield on the 10-year government bond
- The interest a company pays when it borrows from a bank is not the same as the government bond yield. The bank decides it by looking at things such as how long the money is borrowed
What the words mean
- Government bond
- An IOU the country issues when it borrows money
- Yield (interest rate)
- The share of interest on the money borrowed, shown as a percent per year
- Long-term interest rate
- Usually the yield on the 10-year government bond
- Ministry of Finance, Bank of Japan: Ministry of Finance: Japanese Government Bond Interest Rates
- Ministry of Finance, Bank of Japan: Bank of Japan: Change in the Guideline for Market Operations (September 18, 2026)
Economic news presents published statistics and outlooks. It is not investment solicitation or trading advice. Figures are as of publication and may be revised.
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.