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Japan Government Bond Yields Edge Up as Markets Speculate on Faster BoJ Rate Hikes

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2026-06-23 09:39:25
Japanese government bond yields rose slightly on Tuesday, tracking moves in U.S. Treasuries overnight, as markets speculated the Bank of Japan could accelerate interest-rate hikes to address yen weakness.

According to Jin10, Japan’s Finance Minister Satuki Katayama held an online meeting late Monday with U.S. Treasury Secretary Bessent amid concerns triggered by sharp exchange-rate swings.

Japan Broadcasting Corporation and Kyodo News reported that Katayama and Bessent may have discussed currency issues, including the possibility of foreign-exchange intervention.

Keisuke Tsuruta, a senior bond strategist at Mitsubishi UFJ Morgan Stanley Securities, said the meeting could fuel bond-market speculation that the Bank of Japan may speed up rate hikes to curb yen weakness, citing Bessent’s past role in helping create conditions favorable for BOJ tightening.

Lisa Mochizuki, an analyst at Sumitomo Mitsui, said that with the U.S. dollar rising to the mid-161 range against the yen, the BOJ could signal a more hawkish stance, such as hinting at faster rate increases. She added that under such a scenario, medium-term bond yields could face upward pressure.
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