According to Jin10, Takayuki Miyajima of Sony Financial Group argues that Japan's nominal GDP growth is around 3%, a level he says could underpin a move above the 3% threshold for the 10-year Japanese government bond yield.

Miyajima expects the 10-year yield to fluctuate around 3% in the near term, but he considers it unlikely to stay above that level for long because the economy is expected to slow later this year.

He also noted that concerns about the Bank of Japan falling behind on inflation are easing as markets anticipate an imminent rate hike, a development that could help cap further upside in long-term yields.