Japan 10-Year Yield at Highest Since 2008 on Bets for BOJ Hikes

Japan’s benchmark 10-year government bond yield rose to its highest since 2008 on Monday, at a time when Treasury yields ticked lower again, underscoring expectations that the Bank of Japan will keep hiking interest rates.

The yield climbed to a high of 1.575% as data on base pay showed the fastest gain in more three decades, supporting a path of continued gradual hikes from the BOJ. Adding to the momentum was an auction of five-year debt that saw sluggish demand as some investors hold off buying now on the view that rates will keep going up.