On March 26, Japan's two-year government bond yield climbed to its highest level since 1996 due to market expectations that the Bank of Japan will raise rates in the near term. The two-year JGB yield, which is highly sensitive to monetary policy expectations, rose 1 basis point on Thursday to 1.315%, exceeding the previous high of 1.31% touched last month. The ten-year JGB yield rose 2 basis points to 2.270%. Markets expect that oil price increases following the Iran conflict outbreak will trigger inflationary pressures.
Central banks worldwide warned of persistent price pressures, pushing up short-term yields, while traders have largely eliminated expectations for Fed policy easing this year. Rising oil prices are also putting pressure on the yen, further boosting market expectations that the Bank of Japan may need to continue tightening monetary policy. Overnight index swap data shows the market expects a 64% probability of the Bank of Japan taking action in April. #Gate正式接入Polymarket
On March 26, Japan's two-year government bond yield climbed to its highest level since 1996 due to market expectations that the Bank of Japan will raise rates in the near term. The two-year JGB yield, which is highly sensitive to monetary policy expectations, rose 1 basis point on Thursday to 1.315%, exceeding the previous high of 1.31% touched last month. The ten-year JGB yield rose 2 basis points to 2.270%. Markets expect that oil price increases following the Iran conflict outbreak will trigger inflationary pressures.
Central banks worldwide warned of persistent price pressures, pushing up short-term yields, while traders have largely eliminated expectations for Fed policy easing this year. Rising oil prices are also putting pressure on the yen, further boosting market expectations that the Bank of Japan may need to continue tightening monetary policy. Overnight index swap data shows the market expects a 64% probability of the Bank of Japan taking action in April. #Gate正式接入Polymarket