**[Strong Demand for Japan's 10-Year Government Bond Auction, Market Rate Hike Expectations Rise to 80%]** Reported by Jinse Finance, demand for Japan's 10-year government bond auction on Tuesday exceeded the average level of the past 12 months. Despite rising market expectations for a near-term rate hike by the central bank, the higher yield levels still attracted investors. The bid-to-cover ratio was 3.59, higher than November's previous auction at 2.97 and the 12-month average of 3.20. This auction followed comments made by Bank of Japan Governor Kazuo Ueda on Monday, which the market interpreted as increasing the likelihood of a rate hike later this month. Ueda stated that the Bank of Japan would weigh the pros and cons of raising rates and take appropriate action, adding that financial conditions would remain accommodative even after a rate hike. Currently, the swap market indicates about an 80% chance of a rate hike at the December 19 policy meeting, while the likelihood of a January rate hike has risen to over 90%. In comparison, just a week ago, the probability of a December rate hike was only 36%. Meanwhile, Japan's Ministry of Finance plans to increase short-term debt issuance to help fund Prime Minister Sanae Takaichi's economic stimulus package. The issuance of 2-year and 5-year government bonds will be increased by ¥300 billion each, and treasury bill supply will be raised by ¥6.3 trillion. (Jin10)