Japan's 2-Year Government Bond Yield Rises to 1%, Hits New High Since 2008
BlockBeats News, December 1st, according to Nikkei, Japan's two-year government bond yield rose to 1%, reaching a new high since 2008, indicating the market's expectation of a potential interest rate hike by the Bank of Japan (BOJ). The five-year and ten-year yields also rose to 1.35% and 1.845%, respectively, while the yen briefly appreciated by 0.4% to 155.49 against the US dollar. BOJ Governor Haruhiko Kuroda stated that the decision to raise interest rates will be carefully weighed, taking into account the pros and cons.
The market anticipates a 76% probability of a rate hike at the BOJ meeting on December 19th, which increases to over 90% for the January meeting. At the same time, the Japanese Ministry of Finance plans to increase the issuance of short-term government bonds to support Prime Minister Kishi's economic stimulus package, which is expected to exert downward pressure on short-term bonds.
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