Japanese government bond prices fell in the Tokyo morning session, following the decline in US government bond prices on Friday.
Fixed income strategists at Mitsubishi UFJ Morgan Stanley Securities stated in a recent research report that market participants may closely monitor any news from the Bank of Japan to determine whether it will raise interest rates later this month.
Strategists stated: "The Bank of Japan still intends to gradually increase the policy interest rate, and combined with the likelihood of a significant increase in base wages during the 2025 wage negotiations, this has intensified market speculation about future rate hikes and limited the downside potential for the 10-year Japanese government bond yield."
The 10-year Japanese government bond yield rose by 2 basis points to 1.110%.