Japan’s Government Bonds Extend Rally as BOJ Rate Hike Bets Fade

Japanese government bonds extended a sharp rally on Friday as a US stock selloff deepened a broader risk-off move across markets. Traders pared back expectations for a Bank of Japan rate hike, driving further demand for JGBs. The flight to safety in Japanese debt came as the global risk-off shift weighed on equities, with the US stock decline accelerating the move into government bonds.