The Bank of Japan decided on a 0.25% rate hike at its monetary policy meeting on the 18th, prompting bond futures to rebound. Against a backdrop of rising U.S. interest rates, renewed downside probing is likely to come into focus.
Following the Bank of Japan's decision to raise rates by 0.25% at its policy meeting on the 18th, bond futures attracted buybacks and closed firm at ¥125.31. The 10-year Japanese government bond yield is currently 2.975%.
U.S. long-term yields rose from 4.99% on the 18th to 4.95% on the 21st, 4.96% on the 22nd and 5.11% on the 23rd, moving into the 5.1% range, while European government bonds also came under heavy selling pressure. As a result, bond futures are expected to come under selling pressure first, with renewed downside probing likely to intensify.