BOJ Rate Hike Odds Rise as Japanese Yields Climb

Japanese government bond yields rose on Wednesday as markets increasingly priced in a September Bank of Japan rate hike, according to Reuters.

The benchmark 10-year Japanese government bond yield climbed to 2.85%, its highest level this year, while the two-year yield hit its highest level since May 1995 at 1.645%.

Higher oil prices added to inflation concerns, with Brent crude futures rising 0.74% to $89.57 a barrel and U.S. crude futures gaining 0.76% to $83.84.

Markets have brought forward their expectations for the BOJ's next rate increase from December to September, with traders pricing in a 78% probability of a September rate hike as of midday Tuesday, up from 66% on Monday afternoon.