BOJ's Potential Policy Shift and Bond Yield Increase

Bank of Japan (BOJ) considers the timing of an exit from negative interest rates due to concerns about consumption, potentially leading to an imminent policy shift. The BOJ is focused on pulling short-term interest rates out of negative territory and expects inflation to surpass its 2% target. Speculation of an imminent BOJ policy shift led to a significant increase in Japan's 10-year government bond yield, with uncertainty about the future rate hike strategy beyond January.