This year, the Japan 10-Year Treasury Notes Yield successfully avoided entering a higher Trade Range. However, this situation is expected to change next year, when bond supply will increase, coinciding with the Bank of Japan's reduction of its balance sheet. The Japanese Ministry of Finance usually announces the new fiscal year's bond issuance plan at the end of December. According to analysis, if redemptions and the Bank of Japan's purchases are taken into account, the ministry may announce a 64% increase in supply this time. Moreover, the continued weakness of the yen means that investors will price the yield curve of Japanese government bonds to allow for a buffer for interest rate hikes. To address the inflation impact brought by exchange rates, the Bank of Japan will eventually need to raise interest rates. No matter how long the central bank delays the next rate hike, all these factors will put pressure on Japan's long-term government bonds.