Japanese government bond yields climbed on Wednesday as markets increasingly priced in the possibility of a Bank of Japan interest-rate hike as early as September, while higher oil prices added to inflation concerns, Reuters reported.
The benchmark 10-year Japanese government bond yield rose 4.5 basis points to 2.850%, with yields moving inversely to bond prices. The five-year yield gained 2.5 basis points to a record 2.110%, while the two-year yield, which is particularly sensitive to BOJ policy expectations, climbed 3.5 basis points to 1.645%, its highest level since May 1995.
