--- title: "Looming Threat to Japanese Bonds: A Setback for the Global Fixed-Income Rally?" description: "Amidst the impressive year-end rally in the global fixed-income market, a significant development last night casts a shadow over this upward momentum. The yield on the Japanese 10-year bond surged by 12 basis points, driven by comments from BOJ Governor Kazuo Ueda and Deputy Governor Ryozo Himino, instigating a belief that change might unfold sooner than anticipated. The probability of the BOJ ending its negative rates policy this month skyrocketed to nearly 45%, as Himino's speech was perceived as relatively hawkish, amplifying the significance of the BOJ's December meeting to a live event. Adding to the market tension, the Japan 30-Year Bond Sale recorded its lowest bid-cover since 2015. \n\nNotably, the sharp steepening of the Japanese curve, from 20 bps in March to 80 bps at the end of October, coincided with a significant increase in US Treasury yields over the same period...\n\nSource: Bloomberg" image: https://blog.syzgroup.com/hubfs/202312_10y%20JAP.png --- [![Syz Private banking](https://blog.syzgroup.com/hs-fs/hubfs/Logo.png?width=140&name=Logo.png "Syz Private banking")](https://www.syzgroup.com/fr) ## **Thinking** out loud [Subscribe](https://25733253.hs-sites-eu1.com/newsletter-signup?hsLang=en) [![Contact Us](https://hubspot-no-cache-eu1-prod.s3.amazonaws.com/cta/default/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2.png)](https://hubspot-cta-redirect-eu1-prod.s3.amazonaws.com/cta/redirect/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2) - [OUR SERVICES](https://www.syzgroup.com/en/private-banking) - [ABOUT SYZ](https://www.syzgroup.com/en/about/welcome-to-syz) - [CAREERS](https://www.syzgroup.com/en/careers) - [PRESS](https://www.syzgroup.com/en/news) - [Blog Homepage](https://blog.syzgroup.com) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thoughts/tag/the-week-in-seven-charts) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Fixed Income Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [Equity Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [CONTACT](https://www.syzgroup.com/en/contact-us/form) - [ENGLISH](https://www.syzgroup.com/) - [FRANÇAIS](https://www.syzgroup.com/fr) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Weekly Fixed Income](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [The week in seven charts](https://blog.syzgroup.com/slow-food-for-thoughts/tag/the-week-in-seven-charts) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Our Services](https://www.syzgroup.com/en/private-banking) - [About Syz](https://www.syzgroup.com/en/about/welcome-to-syz) - [Careers](https://www.syzgroup.com/en/careers) - [Press](https://www.syzgroup.com/en/news) - [Contact](https://www.syzgroup.com/en/contact-us/form) - [English](https://www.syzgroup.com/) - [Français](https://www.syzgroup.com/fr) ## **Sign-up** for our newsletter This website uses cookies to enhance user navigation and to collect statistical data. 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The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. 7 Dec 2023 - - - #### Looming Threat to Japanese Bonds: A Setback for the Global Fixed-Income Rally? Amidst the impressive year-end rally in the global fixed-income market, a significant development last night casts a shadow over this upward momentum. The yield on the Japanese 10-year bond surged by 12 basis points, driven by comments from BOJ Governor Kazuo Ueda and Deputy Governor Ryozo Himino, instigating a belief that change might unfold sooner than anticipated. The probability of the BOJ ending its negative rates policy this month skyrocketed to nearly 45%, as Himino's speech was perceived as relatively hawkish, amplifying the significance of the BOJ's December meeting to a live event. Adding to the market tension, the Japan 30-Year Bond Sale recorded its lowest bid-cover since 2015. Notably, the sharp steepening of the Japanese curve, from 20 bps in March to 80 bps at the end of October, coincided with a significant increase in US Treasury yields over the same period... Source: Bloomberg [#Fixed Income|](https://blog.syzgroup.com/syz-the-moment/tag/fixed-income) [#Asia](https://blog.syzgroup.com/syz-the-moment/tag/asia) ![Looming Threat to Japanese Bonds: A Setback for the Global Fixed-Income Rally?](https://blog.syzgroup.com/hubfs/202312_10y%20JAP.png) ![Looming Threat to Japanese Bonds: A Setback for the Global Fixed-Income Rally?](https://blog.syzgroup.com/hubfs/202312_10y%20JAP.png) #### Disclaimer This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. Read More ## Related Articles [equities|](https://blog.syzgroup.com/syz-the-moment/tag/equities) [Asia](https://blog.syzgroup.com/syz-the-moment/tag/asia) #### [Indonesian stocks plunge -12%, the most since the Asian Financial Crisis in the late 1990s.](https://blog.syzgroup.com/syz-the-moment/indonesian-stocks-plunge-12-the-most-since-the-asian-financial-crisis-in-the-late-1990s?hsLang=en) MSCI weighs removing Indonesia from its global benchmarks, says it no longer merits EM status Source: David Ingles, Bloomberg **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 16/10/2026 [Fixed Income|](https://blog.syzgroup.com/syz-the-moment/tag/fixed-income) [United Kingdom](https://blog.syzgroup.com/syz-the-moment/tag/united-kingdom) #### [The United Kingdom has purchased the most amount of French bonds out of any nation.](https://blog.syzgroup.com/syz-the-moment/the-united-kingdom-has-purchased-the-most-amount-of-french-bonds-out-of-any-nation?hsLang=en) This puts the UK at the greatest risk of potential contagion & losses if France were to default on their debt or require an IMF & European Central bank loan. When Greece experienced this in 2011 European Banking Crisis, youth unemployment skyrocketed to 60% by 2013. Source: Financelot **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 16/10/2026 [Fixed Income|](https://blog.syzgroup.com/syz-the-moment/tag/fixed-income) [AI](https://blog.syzgroup.com/syz-the-moment/tag/ai) #### [CoreWeave shares fell about 13% Wednesday as its 2032 bonds hit a record 14.5% yield.](https://blog.syzgroup.com/syz-the-moment/coreweave-shares-fell-about-13-wednesday-as-its-2032-bonds-hit-a-record-14.5-yield?hsLang=en) Those bonds were issued in June at 9.625%. That’s an increase of nearly 5 percentage points in four months in the yield investors demand to hold its unsecured debt. The figures behind the move: ▪️ More than $35 billion raised this year. ▪️ Around $52 billion in debt and lease obligations. ▪️ $640 million in net interest expense last quarter—roughly a quarter of revenue. ▪️ A $104 billion backlog, with revenue dependent on infrastructure delivery and customer payments. Venture capitalist Chamath Palihapitiya shared the yield chart, warning of a potential private credit bubble linked to AI. According to figures he cited, private lenders charge AI borrowers spreads of 6.2 percentage points, compared with 6.1 points for other borrowers. CoreWeave’s backlog has grown. So has the yield on its debt. Source: Hedgie **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 15/10/2026 ## Straight from the Desk # Syz the moment Live feeds, charts, breaking stories, all day long. 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