Stocks, Foreign Exchange, Interest Rates: The morning session of the Nikkei average declined, the yen strengthened across the board, and the morning session of the government bond futures also declined.

<11:32> The morning Nikkei average fell, with the strong yen weighing on investor sentiment and speculation on additional rate hikes by the Bank of Japan.
In the morning Tokyo stock market, the Nikkei average fell by 156.05 yen to 38,193.01 yen compared to the previous trading day. The announcement of the Tokyo-area consumer price index (CPI) in the morning led to speculation about additional rate hikes by the Bank of Japan, causing the dollar/yen to strengthen and weigh on investor sentiment. The Nikkei average temporarily fell below the psychological level of 38,000 yen.

<11:23> Yen strengthens across the board, Bank of Japan's December rate hike probability rises to 60%.
The yen's strength extended widely beyond the dollar, with the euro falling from the high 159 yen range in the early morning to the low 158 yen range. Additionally, the Australian dollar fell to around 97 yen, the British pound to the high 190 yen range, and the Swiss franc to the low 169 yen range, all hitting two-month lows.
Following today's Tokyo-area CPI, the probability of a rate hike in December priced in by the Japanese interest rate futures market has risen to 59%. A week ago, it was at 47%, with expectations of no change prevailing.
The dollar is currently trading with a slight rebound to the low 150 yen range.

At 11:15 AM, the morning session of government bond futures fell, with a long-term interest rate of 1.06%. There is a growing awareness of the Bank of Japan's additional rate hikes.
The lead JGB futures contract for December delivery closed the morning session lower at 142.97 yen, down 5 sen from the previous trading day. The yield on the newly issued 10-year JGBs (long-term interest rate) rose by 1.0 bps to 1.060%. The market is conscious of the Bank of Japan's additional rate hikes, leading to selling pressure.
Government bond futures showed a weak trend from the morning. Regarding the Tokyo Consumer Price Index (CPI) for November, Rissho Holdings' economist Yoshitaka Sato stated, "The content is in line with the Bank of Japan's economic assessment, creating an environment for additional rate hikes at the December or January meeting."
On the 28th, Reuters reported that the Ministry of Finance plans to revise the government bond issuance plan for the fiscal year 2024, aiming to increase the total issuance amount on a calendar basis to the mid-173 trillion yen range through regular auctions, while postponing changes to the maturity structure of bonds. The report also mentioned an increase in short-term government bonds to address the strong supply-demand imbalance.