Summary: The Bank of Japan faces a policy dilemma as government bond yields rise, threatening its policy normalization process. The central bank must choose between raising rates, risking higher yields and economic slowdown, or maintaining or cutting rates, potentially accelerating inflation. Rising bond yields also raise borrowing costs for Japan, exacerbating its already high debt-to-GDP ratio.

Link: https://www.cnbc.com/2025/12/04/japan-record-high-jgb-yields-boj-policy-rate.html