Japan’s 10-year government bond yield hovered around 2.78% on Thursday, holding onto its gains following a sharp increase in the previous session amid expectations of tighter monetary policy. Recent data showed that Japanese producer prices climbed 7.1% year-on-year in October, surpassing forecasts of 6.5% and accelerating from September’s 6.8% increase. The stronger figures have reinforced expectations of further Bank of Japan rate hikes, with policymakers anticipated to raise borrowing costs in December and continue tightening into next year. The BOJ’s latest Summary of Opinions also indicated broad support among policymakers for additional rate increases, as underlying inflation has reached levels broadly consistent with its 2% price stability target. However, board member Toichiro Asada urged caution over the timing of further hikes, noting that household consumption remains weak and recent price increases have not necessarily been fueled by strong demand.