Japan: 10-Year Yield Tracks US Treasury Yields Higher.

Japan’s 10-year government bond yield rose to around 2.77% on Wednesday, reaching a one-week high as it followed the upward movement in US Treasury yields. The rise came as hawkish comments from Federal Reserve officials and stronger-than-expected US inflation data reinforced expectations of further Fed rate hikes. Markets are now pricing in roughly a 91% probability of a Fed rate increase next month, up from 84% a day earlier, with additional hikes in January and potentially April also being considered. Meanwhile, the Bank of Japan’s latest Summary of Opinions showed broad agreement among policymakers that interest rates should continue rising, as underlying inflation has reached levels generally consistent with the central bank’s 2% price stability target. BOJ Chief Economist Seisaku Kameda also indicated on Monday that the central bank is likely to raise rates in December and maintain its monetary tightening path throughout next year.