As of August 25, 2026, Japan’s 10-year JGB yielded 2.897% and the 40-year 4.060% — prices set through Ministry of Finance auctions, roughly 20 primary dealers, and Bank of Japan operations. Here is how the world’s most-watched sovereign bond market actually works, how to read the curve, and why equity investors abroad track it daily.
Tokyo’s five-day winning streak ended Tuesday as semiconductor names sold off hard, the 10-year JGB pushed toward 3%, and the yen hovered near 160. The TSE short-selling ratio climbed to 42.6% — the top of its recent range — as positioning turned defensive.
The Nikkei 225 rose 1.16% to 68,308.59 on Thursday as semiconductor names rallied and banks repriced for a possible near-term BOJ hike. The yen held near 159.39, JGB yields pushed higher across the curve, and the TSE short-selling ratio came in at 41.8%.
The Nikkei 225 closed just 0.12% lower at 65,606.71 after recovering from a 1,000-point intraday drop driven by chip-related names. Breadth was positive, the short-sell ratio eased to 37.1%, and the yen gave back intervention gains at 158.45.
The Nikkei 225 fell 0.93% to 65,683 as Tokyo Electron and SoftBank dragged, yet 15 of 17 sectors advanced and the TOPIX proxy gained 0.57%. Short selling eased to 39.9% of turnover as money rotated from semis into pharma, foods and autos.
The Nikkei 225 jumped 2,342.91 points to 66,300.44 on Wednesday as an overnight surge in US chip names lit up Tokyo’s AI complex. SoftBank Group soared 13.96%, Advantest 8.77%. The TSE short-selling ratio eased to 41.8% — still defensive, but the least so in three sessions.
The Nikkei 225 closed at 63,957.53, down 0.63%, while the TOPIX proxy edged higher — a split tape as semiconductor-equipment and heavy-industry names surged against weakness in banks, exporters and index heavyweights. Short selling stayed elevated at 45.3% of TSE turnover.
The Nikkei 225 fell 0.94% to 63,754.90 on Monday as a confirmed joint Japan-US yen-buying intervention sent the dollar down 2.12% to 156.79, pressuring exporters. Fanuc cratered 14% on heavy volume, the TSE short-selling ratio held at an elevated 45.4%, and the Nikkei VI jumped to a stressed 35.50.
The Nikkei 225 jumped 4.03% to 64,362.02 on a narrow, semiconductor-led rebound while the BOJ held rates at 1.0% with one dissent and USD/JPY closed at 160.28 amid intervention talk. The TSE short-sell ratio hit 43.8% — defensive positioning even into strength.
Japan’s Ministry of Finance decides currency intervention and the Bank of Japan merely executes it, funded from the Foreign Exchange Fund Special Account. Traders track a three-step escalation — scripted verbal warnings, rate checks, then actual yen-buying — and confirm operations after the fact through MOF’s monthly disclosures and BoJ current-account projections. Here is the full mechanism.