Japan’s economy grew at a slightly faster pace than expected, backing the case for the central bank to stay on the path toward rate hikes while also easing pressure on the government as it finalizes fiscal stimulus steps to be unveiled this month.

The corporate goods price index (CGPI), which measures the price that companies charge each other for goods and services, rose 3.4% in October from a year earlier, Bank of Japan data showed, above market forecasts for a 3.0% gain. It followed a 3.1% increase in September.

Japan's five-year government bond yield soared to a 15-year high, driven by a weakening yen and speculation of a potential interest rate hike by the Bank of Japan. The yen's decline to a five-month low against the US dollar,

Japan's wholesale inflation accelerated in October at the fastest annual pace in more than a year as renewed yen falls pushed up import costs for some goods, complicating the central bank's decision on how soon to raise interest rates.