Forex
Japan JGB Yields Soar to 31-Year High on Rate Hike Speculation
The two-year Japanese government bond (JGB) yield reached a 31-year high on Monday, rising to 1.73 percent amid speculation of central bank rate hikes and uncertainty over upcoming debt auctions.
The increase, which added 0.5 basis points to the previous day's closing price, brought the two-year yield back to levels last seen in April 1995.
The benchmark 10-year JGB yield also climbed, rising 1 basis point to 2.935 percent as investors await Japan's Ministry of Finance auctions on Tuesday and Thursday.
Market analysts are warning that a potential tightening of monetary policy by the US Federal Reserve could put additional pressure on the Bank of Japan and the JGB market.