Japanese Bond Market Sees Yields Rise Amid Bank of Japan Rate Hike Speculation

The yield on newly issued 10-year Japanese government bonds rose to 3.095% in the morning of October 30th, a 0.010% increase from the previous day.

This increase is attributed to the unwinding of positions built on the premise of an early Bank of Japan rate hike, which involved selling medium-term bonds and buying long-term bonds.

As market pricing for October rate hikes in both Japan and the U.S. paused, investors began to unwind their positions, putting pressure on 10-year bonds.

The yield on newly issued 2-year JGBs, which are more sensitive to policy rates, declined while prices rose.