Japan government bonds fell sharply on Friday, mirroring U.S. Treasuries, which weakened for a second session as traders priced more aggressive Fed hikes. The 10-year JGB yield rose 8bps to 2.87%; the 30-year yield climbed 7bps to 3.99%. Market pricing for Bank of Japan tightening firmed: OIS imply roughly an 87% chance of a rate increase before December. Tokai Tokyo Securities chief strategist Kazuhiko Sano said the JGB and U.S. Treasury selloff could be an overreaction but there is no clear ca

Japan government bonds fell sharply on Friday, mirroring U.S. Treasuries, which weakened for a second session as traders priced more aggressive Fed hikes. The 10-year JGB yield rose 8bps to 2.87%; the 30-year yield climbed 7bps to 3.99%. Market pricing for Bank of Japan tightening firmed: OIS imply roughly an 87% chance of a rate increase before December. Tokai Tokyo Securities chief strategist Kazuhiko Sano said the JGB and U.S. Treasury selloff could be an overreaction but there is no clear catalyst for a sustained JGB rally; any rebound is likely to be limited.