Japan's treasury bonds continued to decline on Monday after the Bank of Japan raised the benchmark interest rate to the highest level in 30 years. The yield on Japan's 10-year treasury bonds rose 7.5 basis points to 2.095%, the highest level since February 1999. The yield on two-year treasury bonds, which are sensitive to monetary policy expectations, climbed 3 basis points to 1.12%, a new high since 1997. Another sell-off in sovereign bonds stemmed from the Bank of Japan's interest rate hike last Friday. However, traders were disappointed that the Bank of Japan did not provide clear guidance on when it might tighten policy again. Meanwhile, after Japan's finance minister Katayama Satsuki and Japan's top foreign exchange official Jun Mimura issued warnings about the recent weakening of the currency, the exchange rate of the yen rose 0.3% against the US dollar to 157.25.

Japan's treasury bonds continued to decline on Monday after the Bank of Japan raised the benchmark interest rate to the highest level in 30 years. The yield on Japan's 10-year treasury bonds rose 7.5 basis points to 2.095%, the highest level since February 1999. The yield on two-year treasury bonds, which are sensitive to monetary policy expectations, climbed 3 basis points to 1.12%, a new high since 1997. Another sell-off in sovereign bonds stemmed from the Bank of Japan's interest rate hike last Friday. However, traders were disappointed that the Bank of Japan did not provide clear guidance on when it might tighten policy again. Meanwhile, after Japan's finance minister Katayama Satsuki and Japan's top foreign exchange official Jun Mimura issued warnings about the recent weakening of the currency, the exchange rate of the yen rose 0.3% against the US dollar to 157.25.