Swaps Traders Cut Bets on BOJ Hiking Rates Again This Year.

Traders in the swaps market have significantly reduced their bets on the Bank of Japan (BOJ) raising interest rates again this year. The probability of a quarter-point hike by the BOJ's December meeting has dropped to around 30%, compared to over 60% a week earlier. The yield on two-year government bonds has also decreased from 0.46% to 0.27%. BOJ Deputy Governor Shinichi Uchida's recent comments suggest that policymakers will avoid raising rates during periods of market instability. If financial markets stabilize, the BOJ may consider another rate hike in December, although the impact on the yen could complicate their decision-making process. [Extracted from the article]