Japan's benchmark bond yield rises to 3% for first time in 30 years

JUST IN: Japan's benchmark bond yield rises to 3% for the first time in 30 years.

Japan's benchmark bond yield just hit three percent, the first time in thirty years.

Think about that. The last time Tokyo paid this much to borrow, the internet barely existed. For most of the past decade Japan was the country where money was free, where the central bank pinned yields near zero and the whole world borrowed cheap yen to buy everything else.

That era is officially over. The Bank of Japan spent years telling markets to be patient, and now the bond market is setting the price itself. Every trader who built a career on Japanese rates never moving is having a very uncomfortable morning.

And here's what I'd watch. Japan is one of the biggest holders of foreign bonds on the planet. If that money starts coming home for a three percent yield, it isn't just Tokyo's problem. It's everyone's.

This is Liu Yang, reporting for HIT.