The yen erased an earlier decline against the US dollar, and Japan's 10-year treasury bond futures fell. Earlier, a media report said that the Bank of Japan might raise interest rates in December. The report quoted three government sources as saying that the Japanese government is expected to tolerate the central bank's decision to raise interest rates. The yen once rose to 155.19 against the US dollar, at 155.54 before the report was published. The exchange rate remained essentially flat during the late trading session in Tokyo. Overnight index swaps show that the probability of interest rate hikes predicted by the market in December rose to 91%, compared to only 56% a week ago. Bank of Japan Governor Kazuo Ueda released the clearest signal so far on Monday, suggesting that the bank may raise interest rates when announcing policy decisions on December 19.

The yen erased an earlier decline against the US dollar, and Japan's 10-year treasury bond futures fell. Earlier, a media report said that the Bank of Japan might raise interest rates in December. The report quoted three government sources as saying that the Japanese government is expected to tolerate the central bank's decision to raise interest rates. The yen once rose to 155.19 against the US dollar, at 155.54 before the report was published. The exchange rate remained essentially flat during the late trading session in Tokyo. Overnight index swaps show that the probability of interest rate hikes predicted by the market in December rose to 91%, compared to only 56% a week ago. Bank of Japan Governor Kazuo Ueda released the clearest signal so far on Monday, suggesting that the bank may raise interest rates when announcing policy decisions on December 19.