Japan's 40-Year Yield Rises to Highest Since 2008 on BOJ Outlook.

Japan's 40-year government bond yield has reached its highest level in 16 years, indicating speculation that the Bank of Japan may raise interest rates in the near future. Despite expectations that the central bank will maintain its benchmark rate at 0.25%, there is a 66% chance of a quarter-percentage-point rate hike by January. Factors such as comments from US Federal Reserve officials and the yen's depreciation against the dollar are contributing to the case for a rate increase. The International Monetary Fund is optimistic about Japan's inflation sustainability and anticipates gradual interest rate hikes by the BOJ. Life insurers reducing their holdings of long-term bonds due to regulatory compliance is also putting upward pressure on 30- and 40-year sovereign bond yields. [Extracted from the article]