On March 26, Japan's two-year government bond yield climbed to its highest level since 1996 due to market expectations that the Bank of Japan would raise rates in the near term. The two-year JGB yield, which is more sensitive to monetary policy expectations, rose 1 basis point on Thursday to 1.315%, exceeding the previous high of 1.31% touched last month. The ten-year JGB yield rose 2 basis points to 2.270%. The market expects that following the Iran conflict outbreak, oil price increases will trigger an inflation shock.

Central banks around the world have issued warnings about persistent price pressures, pushing up short-term yields, while traders have largely eliminated expectations for the Federal Reserve to ease policy this year. Rising oil prices have also put pressure on the yen, further boosting market expectations that the Bank of Japan may need to continue tightening monetary policy. Overnight index swap data shows the market expects a 64% probability of the Bank of Japan taking action in April. #Gate正式接入Polymarket