Japan's 2-year government bond yield fell below zero for the first time since July and the pressure on the Central Bank eased

Japan's 2-year government bond yield fell below zero for the first time since July, falling on expectations that major central banks such as the Federal Reserve and the European Central Bank will start cutting interest rates this year. The yield on policy-sensitive 2-year Japanese government bonds fell 0.5 basis points to minus 0.005% amid expectations that the Central Bank is unlikely to adjust monetary policy at next week's meeting after a strong earthquake on January 1. U.S. 2-year Treasury yields tumbled last week, with 10-year yields falling below 4%, and swap markets are pricing in about an 80% chance of a 25 basis point rate cut by the Fed in March.