Japan's five-year bond yields climb to highest since 2011 as the Bank of Japan is expected to raise rates

According to Jinshi, Japan's 5-year bond yields climbed to their highest level since 2011 as the market expects the Bank of Japan to raise interest rates to curb the weakness of the yen. Japan's 5-year government bond yield rose 1 basis point to 0.49%, exceeding the previous high of 0.485% set on November 1 last year. The average overnight interest rate in Tokyo will rise to 0.3% by the end of the year from the current target range of 0%-0.1% set by the Bank of Japan. As Japanese government officials intensified verbal warnings but there were no clear signs of actual intervention, investors bet that the Bank of Japan will have to raise interest rates to ease the decline of the yen.