Japan bond yield curve twist-steepens ahead of Fed decision

At home, the Yomiuri newspaper reported that Prime Minister Sanae Takaichi is likely to retain Minoru Kiuchi, an advocate of expansionary fiscal and monetary policy, as minister in charge of economic revitalisation in a cabinet reshuffle scheduled for Thursday.

"In the bond market, many had viewed the possible replacement of Kiuchi as a buying factor, so some unwinding of those expectations could emerge today," said Keisuke Tsuruta, senior bond strategist at Mitsubishi UFJ Morgan Stanley Securities.

The benchmark 10-year JGB yield JP10YTN=JBTC fell 1 basis point to 3.020%, after hitting a 30-year high in the previous session. The five-year yield JP5YTN=JBTC dropped 1.5 basis points to 2.295%. Bond yields move inversely to prices.