Japanese government bond yields rise: market bets on central bank rate hike in December

[BlockBeats] On December 3, Japanese government bond yields rose again.

What’s the reason? The market is betting that the Bank of Japan may soon raise interest rates. Look, the Bank of Japan’s policy meeting is scheduled for December 18-19, which will be the last rate decision of the year. Now investors are closely watching economic data, especially the household spending figures to be released this Friday—which can reflect how the economy is really doing.

In terms of data, the 2-year Japanese government bond yield rose by 1 basis point to 1.015%; the 10-year yield climbed even more, up 2 basis points to 1.875%. Behind these moves, everyone is basically positioning in advance, speculating whether the central bank will actually raise rates. After all, the economic indicators are there, and market sentiment has already started to react.