Japan Two-Year Government Bond Yield Rises to Highest Since 2008

Japan’s two-year government bonds fell, pushing yields to the highest level since 2008, tracking moves in the US ahead of the Bank of Japan’s policy decision.

The two-year yield, which is sensitive to monetary policy expectations, climbed 0.5 basis points to 0.885%. Yields also climbed in the US overnight following weekly employment data that cast doubt on the outlook for further reductions this year after the Federal Reserve cut interest rates this week by 25 basis points.