Japanese government bonds tracked overnight Treasury losses, while investors looked ahead to a roughly 2.6 trillion yen auction of 10-year debt and watched for demand from pension funds.
Japanese government bonds came under pressure in early Tokyo trading, following overnight declines in U.S. Treasurys, which often move in tandem with JGBs. Investors were also cautious ahead of the Japanese Ministry of Finance’s auction of about 2.6 trillion yen of 10-year sovereign debt. Citi Research’s Tomohisa Fujiki said demand from pension funds is expected at the sale, adding that Ministry of Finance debt management data showing increased bids from “other” investors last fiscal year probably points largely to the Government Pension Investment Fund. In the latest move, the 10-year JGB yield rose 1.5 basis points to 2.715%.