Bond prices fell in the Japanese market as the rapid speculation of a US interest rate cut receded, leading to instability in the exchange rate and stocks.

Update date and time: September 2, 2024, 15:47 JST (partial excerpt).
In the Japanese market on the 2nd, bond prices fell. This followed the trend of a rapid decline in expectations for a US interest rate cut due to economic indicators, leading to an upward trend in interest rates. The exchange rate and stock prices fluctuated up and down around the closing prices of the previous week, with no clear direction.
The July US Personal Consumption Expenditures (PCE) announced on August 30th accelerated, while the core price index excluding volatile food and energy showed moderate growth. The University of Michigan's Consumer Sentiment for August improved for the first time in 5 months.
There is a growing expectation that the US economy will be able to achieve a soft landing, and there is a possibility that the rate cut at the FOMC meeting on September 17th and 18th will be 25 basis points (bp, 1 bp = 0.01%) instead of 50 basis points.