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Japanese borrowing costs reach 30-year high as yen weakens to 160 per dollar

9/1/2026

Japan's government borrowing costs climbed to their highest point in three decades on Tuesday, while the yen fell to 160 per dollar.

Bond yields, the interest rates a government pays to attract investors who lend it money, rose under pressure as traders watched for Tokyo to raise interest rates.

Bessent said Tokyo may step into currency markets to support the yen. What a 30-year high in yields means A bond yield is what a government pays to borrow, and it rises when investors sell bonds.

Each bond pays a fixed return, so as the price falls through selling, that return becomes a higher percentage of what a new buyer pays.