Japanese government bond yields hit multiweek lows Thursday as the next Bank of Japan policy meeting neared, with Reuters reporting a 2.88% yield for the 10-year benchmark.
Reuters said the 10-year yield was one basis point below its prior level and had not been this low since Sept. 9. Its Thursday snapshot put the five-year yield at 2.285%, down 1.5 basis points, and the 30-year yield at 3.895%, down 2.5 basis points. As of 11:49 p.m. ET Wednesday (03:49 UTC Thursday), other cash maturities had not traded, Reuters reported.
Japan Bond Trading’s Oct. 21 series recorded a 10-year yield of 2.880%, alongside 2.300% for five-year bonds and 3.920% for 30-year bonds. The 10-year reading was down 0.015 percentage point from the prior reference, while the five-year was unchanged and the 30-year was 0.020 percentage point lower. These figures describe the previous session and differ from Reuters’ Oct. 22 market snapshot.
Reuters tied demand for Japanese government bonds to safe-haven buying, citing Middle East tensions, French fiscal concerns and protests, and swings in global stocks. The report separately said investors were watching the BOJ’s next policy meeting. It also noted attention to corporate earnings and developments in artificial intelligence.
Reuters put the market-implied odds of a 25-basis-point rate increase by the BOJ’s December meeting at about 60%. That figure reflects reported market expectations, not a decision or guidance from the central bank.
At its Sept. 17-18 meeting, the BOJ set the overnight call-rate target at around 1.25% in a 7-2 vote. Its policy statement said it would continue raising the rate, with the timing and pace guided by economic activity, prices and financial conditions. A summary of meeting opinions recorded differing views on whether underlying inflation had reached 2% and whether another increase was appropriate.
An earlier EconoTimes report on Japanese government bond yields covered a separate decline after a U.S. technology-stock selloff.
The BOJ’s next policy meeting is scheduled for Oct. 29-30.
