As bonds sell off, Japan needs the discipline of high interest rates

CommentCapital should go to investments that speed up long-term growthRising bond yields may be a sign the Japanese economy is emerging from three lost decades. (Photo by Yutaka Miyaguchi)SETSUO OTSUKASeptember 2, 2026 03:22 JSTTOKYO -- With Japan's long-term bond yields climbing above 3% for the first time in 30 years, interest rates may better fulfill one of their most basic functions: screening projects and investments for profitability.Read NextFinanceJapan's corporate pensions return to domestic bonds as long-term rates riseBondsJapan benchmark bond yield hits 30-year high of 3% amid global debt selloffEquitiesJapan stocks hindered by higher cost of capital as interest rates risePoliticsUS, bond market replace spending caps as check on Japan budgetInterviewBessent's bond intervention