Medium-term Japanese government bond yields fell on the 9th, but domestic and overseas investors have differing views on the pace of future rate hikes. Compared with overseas investors, domestic investors are not yet strongly anticipating a series of rate hikes or a substantial increase in the terminal rate.
Medium-term bond yields fell in Japan's domestic bond market on the 9th against a backdrop of expectations for a Bank of Japan rate hike. As bond prices rose, upward pressure on yields began to run out of steam.
Domestic and overseas investors have differing outlooks for the pace of future rate hikes. Domestic investors are understood not to be currently anticipating a scenario involving a series of rate hikes or a substantial increase in the terminal policy rate, unlike overseas investors.
The yield on 2-year Japanese government bonds issued on the 9th was said to have traded at a level 0.025% lower than the previous day, and reports said that caution in the domestic market was gradually easing to some extent.