Japanese government bond yields fall, tracking US Treasury rally
TLT•Japanese government bond yields fell for a second consecutive session, with the 10-year yield down 4.5 basis points to 3.035% and the 30-year yield down 5.5 basis points to 4.065%. Investors reassessed the outlook for Bank of Japan policy tightening as U.S. Treasury yields retreated.
1. Yields decline again
The 10-year Japanese government bond yield fell 4.5 basis points to 3.035%, its lowest close since September 18. The 30-year yield dropped 5.5 basis points to 4.065%, also its lowest since September 18, while 20-year and 40-year yields held steady.
2. Policy outlook shifts
U.S. Treasury yields retreated after strong demand at a 30-year bond auction, easing pressure on global bond markets. Japan’s 30-year bond auction on Thursday also saw solid demand. Investors largely priced in the next Bank of Japan rate hike for December rather than October; the central bank raised its policy rate to 1.25% in September and signalled a cautious approach to further moves.
