In the Japanese market, the yield on newly issued 5-year bonds reached a new record high, while expectations for an early Bank of Japan rate hike strengthened. The yen remained soft, while TOPIX stayed near its high in the equity market.
In the Japanese market on the 12th, the yield on newly issued 5-year bonds reached a new record high, and upward pressure on short- and long-term interest rates intensified. Yields moved higher following a decline in the bond market.
Market participants said expectations for a Bank of Japan rate hike could rise again, and it was reported that particularly strong moves were seen in short- and medium-term rates, which are sensitive to monetary policy.
In the foreign-exchange market, the yen remained soft, with the risk of fluctuations in dollar-yen and the Japan-US interest-rate differential in focus. Although no definitive cause or factor has been identified, the impact of a widening interest-rate differential has been cited.
In the equity market, TOPIX was reportedly near its high, with investor risk appetite and asset-allocation trends drawing attention.