JGB 2-year yield 1.865% on Fed stance and BOJ bets
Business
Japanese government bond (JGBs) yields just hit their highest level since April 1995, as everyone is buzzing about the Bank of Japan possibly raising interest rates soon.
The two-year JGB yield climbed to 1.865% on Thursday, fueled by both the US Federal Reserve's tough stance and bets that the BOJ will bump its rate up to 1.25% this Friday, with more hikes likely next year.
Ten-year JGB yield slips below 3%
While short-term yields are jumping, long-term JGB yields have actually dipped a bit as inflation worries ease (thanks in part to falling oil prices).
The benchmark 10-year yield slipped just below 3%, and investors are now watching closely for what the BOJ does next and how it might shake up the yen.