BOJ Speech Looms as Japan Bond Yields Edge Up

Japan's bond yields rose slightly on Thursday as investors awaited a speech by Bank of Japan Deputy Governor Ryozo Himino in Saitama, looking for clues on whether the central bank is planning to raise interest rates in September.

The two-year Japanese government bond (JGB) yield led the move, briefly reaching 1.695%, while five- and ten-year yields also rose slightly. This increase signals a decrease in bond prices, suggesting that investors are pricing in higher expectations for BOJ policy rates.

Strategists, including Naoya Hasegawa at Okasan Securities, have warned that if Himino doesn't validate the market's assumption of a September rate hike to 1.25%, markets could interpret his speech as dovish and adjust their bets accordingly.