Japan’s Two-Year Bond Sale Tests Demand After BOJ’s Hawkish Hold

Japan’s two-year bond auction on Thursday will test investor demand after recent policy signals from the Bank of Japan and the Federal Reserve added upward pressure to short-term rates.

Government bond yields rose ahead of the sale with the 2-year yield increasing 2 basis points to 1.39%. The 10-year climbed 5.5 basis points to 2.515%, the highest level since 1997.