Japan 40-year government bond auction bid-to-cover ratio rises to 3.1, the strongest since 2020; Japanese government bond futures continued to rise after the auction.
Mitsubishi UFJ Morgan Stanley Securities moved forward its expectations for two Bank of Japan rate hikes to 2026 year December and 2027 year April, citing the Bank of Japan's July meeting minutes, which said that greater attention should be paid to upside price risks.
The yen has weakened for consecutive 2 weeks and is approaching the 160 threshold, drawing renewed market attention to the possibility of FX intervention by Japan.