As investors increase their bets that the Bank of Japan will continue to raise interest rates, the yield on Japan's two-year treasury bonds is approaching the critical 2% mark. The yield is sensitive to monetary policy expectations. It rose as high as 4 basis points to 1.975% on Monday, a record high since 1995.

As investors increase their bets that the Bank of Japan will continue to raise interest rates, the yield on Japan's two-year treasury bonds is approaching the critical 2% mark. The yield is sensitive to monetary policy expectations. It rose as high as 4 basis points to 1.975% on Monday, a record high since 1995.