Copyright japantimes
Bank of Yokohama, Japan’s largest regional lender, is prepared to pile back into the domestic debt market when the central bank’s peak interest rate is in sight.The Bank of Japan looks set to stand pat on policy this month, though there’s a “good chance” of it raising interest rates in either December or January to 0.75%, according to Hitoshi Inoue, an executive officer who heads the lender’s markets business. For now, the bank plans to stay cautious on Japanese government bonds, he said.His main scenario is for the BOJ’s rate to peak at 1.25% after an additional hike in the fiscal year starting in April 2026 and another the following year. The BOJ moves would likely lift the 10-year Japanese government bond yield to around 2%, Inoue said. The benchmark rate was at 1.65% in Tokyo on Wednesday.
