Interest rate hikes looming + supply pressure! Fear of tepid demand for two-year Japanese government bonds.

According to the Wisdom Finance APP, as speculation in the market grows that the Bank of Japan may need to raise interest rates to a greater extent to curb inflation and support the yen, investors are holding their breath for the Japanese two-year government bond auction on Thursday. This auction is taking place less than a week after the Bank of Japan raised its policy rate to a thirty-year high. Bank of Japan Governor Haruhiko Kuroda did not provide clear guidance on the timing of future monetary tightening in his speech following the interest rate decision, leading to a weakening yen and a significant increase in bond yields.