BOJ Deputy Governor Sows Uncertainty on Rate Hike Timing

Japanese government bond yields retreated from session highs on Thursday after Bank of Japan Deputy Governor Ryozo Himino's speech.

In his closely watched address, Himino emphasized the need for timely policy adjustments and encouraged policymakers to conduct in-depth deliberations on price pressures at every meeting.

This reinforced expectations that the BOJ remains on a path towards further monetary tightening, but offered no clear signal that a rate hike would come at the central bank's September meeting.

Investors have increasingly positioned for a faster pace of rate hikes following joint Japanese-US efforts in July to support the yen. The currency's weakness and persistent inflation pressures have strengthened expectations that the BOJ may continue moving away from its ultra-loose monetary policy.