Japan's 2-year government bond yield approaches 2% as market ramps up bets on central bank rate hike

Japan's 2-year government bond yield is approaching the 2% mark as investors ramp up bets on further interest rate hikes by the Bank of Japan. The yield on this tenor, which is relatively sensitive to monetary policy expectations, rose 4 basis points to 1.975% on Monday, hitting its highest level since 1995. Other maturities also came under pressure, with the 5-year government bond yield rising 3 basis points to 2.43%.