Japan's 2-Year Government Bond Yield Approaches 30-Year High

The yield on Japan's 2-year government bond is nearing the 2% threshold, a level not seen in 30 years, signaling market expectations for continued inflation and potential further rate hikes by the Bank of Japan. The yield has doubled over the past 12 months. Market attention is now focused on the upcoming Tankan survey, which may provide further justification for a potential rate hike in October.