Is the fixed 5-year better than the variable 10-year right now?

With the fixed 5-year at 1.66% and the variable 10-year at 1.48%, fixed pays more today. The variable must average above 1.66% over several years to catch up. If rates rise quickly and stay high, the variable can win. If increases are slow or brief, fixed likely remains ahead.

How much would I earn on ¥10,000,000 with the fixed 5-year?

At 1.66%, gross interest is ¥166,000 per year. After the 20.315% tax, net income is about ¥132,300. Paid semiannually, that improves cash flow versus typical deposits. Reinvest coupons to boost compounding. Confirm your exact withholding and payment dates with your bank or broker.

What is a simple ladder using personal government bonds?

Split funds across the 3-year, fixed 5-year, and variable 10-year JGBs. For example, 40% in 3-year, 40% in fixed 5-year, and 20% in variable 10-year. This spreads reinvestment dates and reduces timing risk. Adjust weights annually based on your income target, cash needs, and rate outlook.

What could make the variable 10-year JGB outperform soon?

A fast, sustained rise in Japan government bond yields would lift variable coupons at upcoming resets. That would push average income above the fixed 5-year rate. Watch Bank of Japan policy, inflation, wage data, and the yen. Rapid moves early in your holding period help the variable the most.

Global Market Insights

Japan Bond Yields: Retail JGB Shift to Fixed 5-Year – February 17

ByDanny Kontos February 17, 2026February 17, 2026

Japan government bond yields are reshaping household portfolios. With the 10-year above 2.2%, February rates on personal government bonds now favor the fixed 5-year JGB at 1.66%, and even the 3-year at 1.39%, over the variable 10-year JGB at 1.48%. This rare inversion is steering cash from low-yield deposits into JGBs. We explain what these levels mean, how to compare fixed and variable choices, and simple steps to improve income in yen with clear, low-risk actions.