japanese financial stocks rose sharply tuesday after the bank of japan loosened its grip on the yield curve allowing it to shift higher mitsubishi ufj financial group inc shares were recently 59 higher at 8180 yen 597 and daiichi life holdings inc shares were up 88 at y28690 the bank of japan said tuesday that the 10year japanese government bond yield could now move freely between 05 and 05 wider than the previous range of between 025 and 025 the 10year jgb yield was recently at 0435 up from 0250 prior to the bojs announcement higher government bond yields mean banks and insurers can charge higher interest rates on commercial loans and earn better yields from bonds and other financial investments the japanese central bank had capped the 10year jgb yield around 025 by conducting bondbuying operations in recent months bond yields have risen sharply around the world as a recovery from the covid19 pandemic and the russiaukraine war caused a surge in inflation