The yield on Japan's 30-year government bonds reached a record high of 3.445% on Thursday morning, as the Ministry of Finance prepared to auction 700 billion yen in notes. This surge in yields is attributed to market speculation about a potential rate hike by the Bank of Japan and concerns over fiscal expansion. Despite these pressures, Sony Financial Group economist Takayuki Miyajima anticipates a smooth auction outcome, citing high yields as a factor bolstering demand. The upward trend in Japanese government bond yields reflects growing market expectations of a December rate hike by the Bank of Japan, alongside worries about Japan's fiscal health. The auction results, expected later today, will provide further insight into investor sentiment amid these economic conditions.