Japan's 10-year government bond yield hits 1% for first time in 11 years

TOKYO -- Japan's 10-year government bond yield rose to a 11-year high, as the Bank of Japan moves to normalize itsinterest rate policy and investors weigh the possibility that the central bank may raise interest rates or scale back purchases of government bonds in the near future. This has made them cautious about holding government debt. 

Japan's 10-year government bond yield hit 1% during Tokyo trading hours on Wednesday, rising 2 basis points from Tuesday's close to reach their highest level since May 2013. The 10-year JGB yield has risen 0.38 percentage point this year, as the central bank edges away from its unorthodox ultraloose monetary policy.