Japan's long-term interest rates fell on the morning of the 14th, with the yield on the benchmark newly issued 10-year Japanese government bond dropping 0.010 percentage point from the previous day to 2.855%. The move followed a rally in U.S. Treasuries after the July U.S. Producer Price Index (wholesale inflation gauge) came in below market expectations, easing concerns that the Federal Reserve (U.S. central bank) would raise rates soon. That decline in U.S. long-term yields drew buying into Japanese bonds, while bond futures also rebounded, with the lead September contract opening 24 sen higher at 126.69 yen before trading in a narrow range. Investors still have not fully abandoned expectations for U.S. rate hikes, but there is a growing view that near-term upward pressure on yields has eased. Even as buybacks of Japanese bonds have progressed, the market remains cautious ahead of more important U.S. releases including the Consumer Price Index and employment statistics.