Investors, after release of the Bank of Japan’s policy meeting minutes, are
increasingly focused on a faster-than-expected tightening path, boosting JGB
yields on Monday. The 10-year JGB yield rose about 2.5bps to 2.810%; the 2-year
hit a roughly 31-year high of 1.620%; the 5-year reached a record 2.090%. Totan
Research and Totan ICAP show market-implied September rate-hike odds at 66% as
of Monday afternoon, up from about 30% at month-end.
