Japan's Two-Year Bond Yield Hits 1995 High as BOJ Rate Hike Bets Surge

Japan's two-year government bond yield has risen to its highest level since 1995 as investors bet on further interest rate hikes by the Bank of Japan (BOJ).

The BOJ's two-year bond yield jumped four basis points to 1.975% on Monday, closing in on the key 2% threshold.

This increase is a sign that investors expect the BOJ to raise its benchmark interest rate, which could have implications for the Japanese economy and the global financial markets.

The five-year yield also rose three basis points to 2.43%, indicating that investors are adjusting their expectations for monetary policy in Japan.