Japan’s 10-year government bond yield remained above 1.2% on Monday, staying at its highest levels in nearly 14 years. This comes amid speculation that the Bank of Japan could raise its inflation forecasts at its policy meeting this month, potentially paving the way for future interest rate hikes. Last week, Japan’s Economy Minister Ryosei Akazawa remarked that the economy is at a “critical stage” in overcoming deflationary pressures, though he did not offer a clear timeline for any rate hikes. The rise in Japanese government bond yields also mirrored a rally in US Treasury yields, as stronger-than-expected US jobs data dampened expectations for further Federal Reserve rate cuts this year, contributing to a broader upward trend in global bond yields.
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