Japan Bond Yields Poised for Fifth Consecutive Quarter of Double-Digit Gains

Japan's 10-year government bond yield is poised for its fifth consecutive quarter of double-digit gains, amidst global market pressure and concerns over Japan's fiscal outlook.

The mid-term yields were influenced by expectations of a possible October Bank of Japan rate hike. However, market-implied odds have declined due to changing U.S. rate expectations and yen pressures.

As investors increased their expectations that the BoJ could raise interest rates as early as October, mid-term JGB yields moved more sharply than those at the longer end of the curve.