Japanese Bond Yield Hits 31-Year High Amid Rate Hike Bets

Japan's two-year government bond yield hit a 31-year high at 1.605% as investors bet on an interest rate hike by the Bank of Japan (BOJ) as soon as September.

The move was triggered by a weaker yen, which revived bets on a BOJ rate hike despite recent efforts to support the currency.

Short-dated yields tend to move with expectations for the BOJ's policy rate, indicating that borrowing costs in Japan may rise sooner than expected.