Japan Bond Yields Hold Steady As Markets Wait For Central Bank Decision

Japanese government bond yields stayed mostly steady while markets waited for the Bank of Japan's policy decision on Friday. Strong demand at a recent two-year bond auction helped keep yields stable alongside gains in foreign debt markets. Most market watchers expect the central bank to keep interest rates steady for now. However, a poll shows that a rate hike of 25 basis points could happen later in December.

Context

Central banks like the Bank of Japan manage interest rates to control economic growth and inflation. Bond yields tend to move based on investor demand and what people expect future interest rates to do.