Japanese two-year government bond yields have climbed to 1%, marking the highest level since 2008, as market expectations for a Bank of Japan (BOJ) interest rate hike intensify. The five-year and ten-year yields have also risen to 1.35% and 1.845%, respectively. Concurrently, the yen appreciated by 0.4% against the dollar, reaching 155.49. BOJ Governor Kazuo Ueda has indicated that the central bank will weigh the pros and cons of a rate hike and make a decision at an appropriate time. Market forecasts suggest a 76% probability of a rate increase at the BOJ's December 19 meeting, with expectations rising to over 90% for the January meeting. Additionally, Japan's Ministry of Finance plans to issue more short-term bonds to support Prime Minister Sanae Takaichi's economic stimulus package, which is expected to exert downward pressure on short-term bond prices.