Japan Bonds Fall as Treasury Rout Extends on Fed-Hike Bets

Bonds Japan Bonds Fall as Treasury Rout Extends on Fed-Hike Bets Japanese government bonds slumped on Friday, tracking Treasuries which saw a second straight session of losses as traders increased wagers on aggressive Federal Reserve interest-rate hikes. The benchmark 10-year yield rose 8 basis points to 2.87%, while the 30-year yield climbed 7 basis points to 3.99%. Expectations for further Bank of Japan tightening have also rebounded, with overnight-index swaps now implying about an 87% chance of a rate increase by December, up from last week’s low of around 50% when bonds rallied.