Bank of Japan reportedly raises rates to 1.25%, a 31-year high

A September 19, 2026 post says the Bank of Japan raised rates to 1.25%, a 31-year high. It says Japanese insurers and pension funds hold over $1 trillion in US Treasuries, mostly hedged back into yen, and argues that rising hedging costs favor a switch to Japanese government bonds. The post also says Japan trimmed its Treasury holdings by roughly $135 billion earlier in 2026 and warns that further BOJ hikes would add pressure on long-term US Treasury yields.