08:04 AM EST, 11/20/2025 (MT Newswires) -- Japanese government bonds (JGB) cheapened overnight Wednesday on two main developments, said Scotiabank.

One was that a Bank of Japan Board member -- Junko Koeda -- expressed openness to a rate hike next month, noted Scotiabank. That's not priced amid wider expectations for a hike in January.

Next week's Tokyo inflation gauge may further inform expectations, pointed out the bank.

The second development was a Bloomberg article about new Prime Minister Sanae Takaichi's plans to apply about 18 trillion yen of fiscal stimulus, which exceeds prior plans under the previous administration, stated Scotiabank.

The curve bear steepened with the 2s yield up 3bps, the belly up 6bps-7bps and the long end up 3bps, added the bank.

In addition to JGB selling, the yen (JPY) is among early Thursday's weakest performers to the US dollar (USD), according to Scotiabank. Should fiscal stimulus pick up, the BoJ's confidence to hike may rise commensurately.