Japanese bond yields fell slightly on Monday along with US bond yields, but the 10-year JGB trend towards 3% is strengthening itself. Despite recent market speculation, bond traders are unconvinced that the Bank of Japan will increase the pace of interest rate hikes. As the yield on ultra-long-term bonds approaches 4%, upward pressure on yields is spreading to 10-year bonds. This gave Bank of Japan Governor Kazuo Ueda an opportunity to throw out unexpected information enough to shake up the market at the press conference after Friday's decision meeting. However, historical experience shows that considering that Ueda has always been unwilling to disrupt the market on central bank decision days, investors can often get better returns if they continue to bet on the familiar combination of weakening yen and slowly rising yields.

Japanese bond yields fell slightly on Monday along with US bond yields, but the 10-year JGB trend towards 3% is strengthening itself. Despite recent market speculation, bond traders are unconvinced that the Bank of Japan will increase the pace of interest rate hikes. As the yield on ultra-long-term bonds approaches 4%, upward pressure on yields is spreading to 10-year bonds. This gave Bank of Japan Governor Kazuo Ueda an opportunity to throw out unexpected information enough to shake up the market at the press conference after Friday's decision meeting. However, historical experience shows that considering that Ueda has always been unwilling to disrupt the market on central bank decision days, investors can often get better returns if they continue to bet on the familiar combination of weakening yen and slowly rising yields.