Japanese treasury bond futures declined slightly at night, and Bank of Japan Governor Ueda Kazuo reminded traders that there was a risk of price overadjustment. Inflation levels remain high, and energy prices show little sign of cooling. This may prompt the central bank to speed up the pace of interest rate hikes and move closer to the 2% neutral interest rate, which is faster than expected from the current pricing of the yen yield curve.

Japanese treasury bond futures declined slightly at night, and Bank of Japan Governor Ueda Kazuo reminded traders that there was a risk of price overadjustment. Inflation levels remain high, and energy prices show little sign of cooling. This may prompt the central bank to speed up the pace of interest rate hikes and move closer to the 2% neutral interest rate, which is faster than expected from the current pricing of the yen yield curve.