cryptogamefi| The Bank of Japan's surprise cut in bond purchases this week sparked speculation that expectations for another rate hike before the end of July are rising

After the Bank of Japan unexpectedly reduced its bond purchases during its routine operation this week.CryptogamefiInvestors are betting that the bank will raise interest rates by the end of July.

Overnight index swaps suggest that the probability of the central bank raising interest rates by the end of July is about 70 per cent, up from about 50 per cent earlier this month.

The shift in market positions comes at a time when the yen is under downward pressure, with large spreads between the US and Japan causing the yen to fall. In addition, there is a growing expectation that the central bank may announce a broader reduction in bond purchases at its June meeting before raising interest rates in July.

In Tokyo, the yen held steady on Wednesday, while JGBs moved modestly, with 20-and 30-year yields climbing to their highest level in a decade recently. The yield on the benchmark 10-year Treasury note is close to its highest level since 2013.Cryptogamefi.975% is within walking distance.

Christopher Willcox, head of trading at Nomura Holdings, said in an interview on Wednesday that the yield on 10-year Treasuries "could exceed 1 per cent at some point" because inflation is likely to remain high.

The yen could still rise to Y140 to the dollar this year, based on expectations that the Bank of Japan could announce a "limited tightening" in October, Willcox added.

Investors are divided on the outlook after July.

In addition to the rate hike in March, traders expect the BoJ to raise interest rates only once again this year, according to a market indicator.

Pimco expects the Bank of Japan to raise interest rates three more times this year. Vanguard Group Inc. Ales Koutny, head of international interest rates, expects to raise interest rates to around 0.75% by the end of the year. Goldman Sachs expects the bank of japan to raise interest rates twice a year until they reach 1.25% MUE 1.5%.

Some investors believe that the BoJ will not raise interest rates sharply because companies accustomed to ultra-low borrowing costs will cut spending. Others argue that ignoring interest rate hikes could lead to a further depreciation of the yen, pushing up import costs.

PineBridge Investments Japan Co. Tadashi Matsukawa, head of fixed income management in Tokyo, said that if the Bank of Japan raises interest rates twice a year, yields on medium-term bonds, especially five-year Treasuries, will be affected.

Tags:

Prev: onlinerouletteforfun| Well-known A-share listed companies may lose more than 20 million yuan to sell villas!
Next: bonuspoker| Market analysis: The market's comprehensive and in-depth response to policy changes