Japanese Yen JGB Yields Rise as Market Bets on BOJ Rate Hike Ahead of December Policy Decision

Japanese government bonds yields climbed as markets price in a possible Bank of Japan rate adjustment. The Policy Board will convene December 18–19 to decide the year’s terminal interest rate, guiding expectations for the pace of policy normalization.

To gauge economic strength, investors will scrutinize upcoming household spending data due Friday and other domestic indicators that inform the central bank’s inflation outlook.

On the yield curve, the 2-year JGB yield rose by 1 basis point to 1.015%, while the 10-year yield advanced by 2 basis points to 1.875%, signaling a measured shift in risk sentiment as policy expectations evolve.