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 interest rates in the near term. Japan's two-year government bond yield, which is sensitive to monetary policy expectations, rose 1 basis point to 1.315% on Thursday, 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 following the Iran conflict escalation, rising oil prices will trigger inflationary pressures.

Central banks worldwide have warned of persistent price pressures, pushing up short-term yields, while traders have largely eliminated expectations for the Federal Reserve to ease policy this year. Rising oil prices are also pressuring the yen, further raising market expectations that the Bank of Japan may need to continue tightening monetary policy. Overnight index swap data shows the market estimates a 64% probability that the Bank of Japan will take action in April. #Gate正式接入Polymarket