According to CoinMeta, a report released by the Bank of Japan indicates that rising inflation rates are the cause of the increase in bond yields. The report mentions that changes in economic fundamentals such as accelerating underlying inflation in Japan may be behind the recent rise in long-term interest rates. As the Bank of Japan continues to reduce its purchases of government bonds, the functionality of the Japanese government bond market is improving significantly. The report also notes that, given the still large scale of Japanese government bonds held by the Bank of Japan, its holdings continue to suppress the term premium.