Japan bonds retreat as AI share rebound saps haven demand
TLT•Japanese government bonds retreated as a rebound in AI-related shares reduced demand for haven assets. The 10-year yield rose 1.5 basis points to 2.795%, while investors awaited central bank meetings this week.
1. Japanese yields rise
The benchmark 10-year Japanese government bond yield climbed 1.5 basis points to 2.795% on Tuesday. The 20-year yield added 1 basis point to 3.595%, the 30-year yield held at 3.805%, and the 2-year yield rose 1 basis point to 1.885%.
2. Investors await policy signals
The Bank of Japan is widely expected to pause at its October 29-30 meeting after raising rates to 1.25% in September. Many market participants are looking for a hike to 1.5% in December, while some see January as an alternative. Shinichiro Kadota of Barclays said the yen rates market may struggle to find direction as earnings and policy meetings approach.
