Japan's 10-year government bond yield touched 3% on Tuesday for the first time since 1996, marking a historic milestone in a global sovereign debt sell-off. The yield has more than tripled in two years and roughly doubled since Prime Minister Sanae Takaichi took office last October, with shorter maturities also at multi-decade highs. The immediate driver is monetary policy, as the Bank of Japan's rate stands at 1%, a level last seen 31 years ago, reached through a slow sequence of hikes. Markets are pricing an 80% to 90% chance of a further hike to 1.25% at the BOJ's meeting on September 17-18, which would represent a 0.75% increase in just nine months.