Bond prices are falling, as US interest rates soar on strong employment statistics, with the 10-year yield at 0.9% also expected to see buying opportunities.

October 7, 2024 7:35 JST (excerpt)
Bond market on the 7th is expected to decline. Following the significant rise in long-term interest rates due to strong employment statistics in the US market last weekend and the retreat of expectations for substantial rate cuts, the Bank of Japan's JGB purchases are scheduled to provide support to the market along with expectations for buying at around 0.9% yield for newly issued 10-year JGBs.
Sei Suzuki, Senior Bond Strategist at Okasan Securities, expects subdued market conditions today as US interest rates have surged following the employment statistics. He notes, however, that with the BOJ's asset purchase program underway and buying opportunities expected at the 0.9% level for 10-year bonds, there is unlikely to be significant rebound ahead of the 30-year bond auction on the 8th. He anticipates a resilient trend after an initial dip in prices.