Japan Two-Year Yield Rises to Highest Since 2011 on BOJ Bets
- Inflation slowed less than economists estimated in January
- Swaps price in end of BOJ’s negative-rate policy by June
The yield rose 1 basis point to 0.165% after government data showed inflation slowed less than economists estimated last month.
Photographer: Akio Kon/BloombergThis article is for subscribers only.
Japan’s two-year bond yield climbed to the highest level since 2011 amid growing speculation the central bank will abandon its negative-interest-rate policy in coming months.
The yield rose 1 basis point to 0.165% after government data showed inflation slowed less than economists estimated last month. Overnight-indexed swaps indicated market bets that the Bank of Japan is certain to abolish its subzero rate policy by June.