frenzyvideopokerfree| 10-year Japanese bond yields hit key level of 1% market focus on when the Bank of Japan will raise interest rates

Zhitong Finance noticedfrenzyvideopokerfreeJapan's 10-year sovereign bond yields hit a key psychological level of 1% for the first time since the Bank of Japan launched unprecedented stimulus measures in 2013, and the market's focus is now on how quickly the policy will fall back.

The yield on the benchmark 10-year Treasury note rose 2 basis points to its highest level since May 2013. Yields on U.S. Treasury bonds, including 20-year and 30-year bonds, have recently reachedfrenzyvideopokerfreeAt its highest level in 10 years, inflation has exceeded the Bank of Japan's 2% target for two consecutive years.

The 1% level is crucial to the market because it serves as the reference point for the Bank of Japan's yield curve control policy, which was scrapped in March this year and also eliminated negative interest rates. Judging from the trend of the swaps market, the probability of the Bank of Japan raising interest rates again at its meeting in late July is about 66%, compared with 14% when the Bank of Japan made its historic policy decision in March.

Shoki Omori, chief strategist at Mizuho Securities, said that if interest rate expectations rise, yields on Japanese government bonds, especially on 10-year bonds, will rise further. He said the 10-year yield could rise to as much as 1 per cent in the coming weeksfrenzyvideopokerfree.2%。

Goldman Sachs Group strategists predict that Japanese 10-year bond yields will rise to 2% by the end of 2026 as investors expect the Bank of Japan to implement an "extended" tightening cycle.