Japan’s 10-year government bond yield climbed to around 2.89% on Thursday as investors continued to evaluate the outlook for Bank of Japan monetary policy. Markets are currently pricing in around an 87% chance of a 25 basis point BOJ rate hike in September to 1.25%, up sharply from about 23% before the central bank’s July meeting. Earlier this week, former BOJ board member Seiji Adachi said the central bank will likely raise rates next month and again as early as January, warning that keeping rates unchanged could reignite a yen selloff and accelerate import-driven inflation. Investors now await BOJ Deputy Governor Ryozo Himino’s speech later in the day for further guidance. Meanwhile, BOJ Governor Kazuo Ueda will not attend the Federal Reserve’s annual Jackson Hole symposium this week due to a scheduling conflict.