U.S. Treasury yields rise, rate hike expectations intensify, and the U.S. dollar is weighed down by a stronger yen.

(1) Driven by rising oil prices and last week's better-than-expected employment data, market expectations for a Federal Reserve rate hike next week have intensified, pushing U.S. Treasury yields higher. (2) Danske Bank believes that it is reasonable for current market pricing to reflect almost equal probabilities of a rate hike or a pause. Although the bank itself is not optimistic about a rate hike next week, it still expects the Federal Reserve to raise rates once each in December and March. (3) Meanwhile, the Japanese yen has strengthened further, resulting in the U.S. dollar weakening against a basket of major currencies.