Bonds are falling, under pressure from high US bond yields and selling pressure ahead of government bond auctions - soft in the ultra-long zone.

Updated on September 2, 2024, 10:42 JST (excerpt)
On the 2nd, the bond market fell. This was due to the impact of rising interest rates following the retreat of speculation on significant rate cuts in the United States at the end of the previous week, as well as selling pressure mainly in the long-term zone in preparation for the 10-year bond auction on the 3rd and the 30-year bond auction on the 5th.
Keisuke Tsuruta, Senior Bond Strategist at Mitsubishi UFJ Morgan Stanley Securities, pointed out that there are movements to adjust yield levels ahead of the 10-year auction tomorrow. While there were expectations for increased demand for long-term bonds due to the extension of the holding period of existing bonds at the end of last week, the market remained sluggish. It is said that there is caution among buyers, who are not chasing higher prices, and also in anticipation of the 30-year auction.

September futures for long-term government bonds temporarily fell by 21 sen to 144.51 yen compared to the end of the previous week.
The yield on the newly issued 30-year bonds is 2.115%, which is 2.5 basis points higher.
The newly issued 10-year bonds have not yet been traded.