Japan markets see little chance of BOJ rate hike cycle ahead

2-year yield near zero points to 'lower for longer' outlook

Few market watchers expect multiple rate hikes from the Bank of Japan next year, unlike from the U.S. Federal Reserve. (Nikkei montage/source photos by Yumiko Oshima, Reuters)

YASUHA MINAMI and AKIRA INUJIMA, Nikkei staff writers

December 22, 2023 05:36 JST

TOKYO -- Japanese market data suggests that traders expect the Bank of Japan to end its negative interest rate policy soon, but do little if any tightening after that.

The two-year Japanese government bond yield hit 0.035% in Tokyo on Thursday, marking 67 straight days in positive territory, its longest such streak in around nine years.