Japan’s 10-year sovereign bond yield reached the key psychological level of 1% for the first time since the Bank of Japan ramped up unprecedented stimulus measures in 2013.

The focus turns now to how quickly the supereasy monetary policy will be dialed back and how much further yields may rise. Those for 20— and 30-year bonds have reached decade highs recently, with inflation sticking above the central bank’s 2% target for two years, and analysts see them likely to climb more.

"If rate expectations are going to increase, Japanese government bond yields across the curve, particularly for the 10-year, are going to rise more,” said Shoki Omori, chief desk strategist at Mizuho Securities. The 10-year yield may go as high as 1.2% in coming weeks, he said.