Japan’s Two-Year Yield Hits Highest Since 2008 on Rate-Hike Bets

Japanese government bonds slumped, with the two-year yield rising to its highest level since 2008, after comments from the Bank of Japan chief brought a December rate hike into focus.

The two-year rate, which is sensitive to monetary policy expectations, rose 3 basis points to 1.02%, while yields on other maturities also surged. The yen also strengthened as much as 0.5% to 155.4 against the dollar.