[MARKET UPDATE] JGBs gap lower, outside of the morning range, as the BoJ raised its inflation forecasts and fiscal 2025/2026 growth projections

JGBs gap lower, outside of the morning range, as the BoJ raised its inflation forecasts and fiscal 2025/2026 growth projections.

The Bank of Japan's upward revision of inflation forecasts and growth projections for fiscal years 2025 and 2026 suggests a more hawkish outlook, prompting some selling in Japanese Government Bonds (JGBs). This shift could impact interest rate expectations and lead to a re-evaluation of risk sentiment in the region, particularly for yen-sensitive assets.