Japanese 2-Year Government Bond Yield Hits New High Since 2008, Nikkei 225 Index Plunges by 2.00% Intraday

BlockBeats News, December 1st, according to Nikkei, the yield on Japan's two-year government bond rose to 1%, hitting a new high since 2008, indicating the market's expectation of a potential interest rate hike by the Bank of Japan (BOJ). The five-year and ten-year yields rose to 1.35% and 1.845% respectively, while the yen briefly appreciated by 0.4% to 155.49 against the US dollar. BOJ Governor Haruhiko Kuroda stated that the decision to raise interest rates would be carefully considered, weighing the pros and cons.

The market expects a 76% probability of a rate hike at the BOJ meeting on December 19th, which rises to over 90% for the January meeting. Meanwhile, the Japanese Ministry of Finance plans to increase the issuance of short-term government bonds to support Prime Minister Kaimanao Takai's economic stimulus package, which is expected to put downward pressure on short-term government bonds.

Furthermore, as of the time of writing, the Nikkei 225 Index has experienced an intraday decline of 2.00%.