The recurring tensions between the US and Iran trigger volatility in Japanese bonds, putting pressure on ultra-long maturities and steepening the yield curve.
- Japanese government bond futures opened lower on Monday, dropping 27 ticks from last Friday to 127.48 and further declining in early trading to an intraday low of 127.46. The main drag came from risk-off sentiment triggered by uncertainty over US-Iran peace talks.
- As US Vice President Vance and Iranian officials held their first meeting and negotiations made progress, market panic eased somewhat. Buy orders emerged at lower levels, pushing the short end, as well as five-year and ten-year yields, down from their morning highs, though selling pressure on the ultra-long end remained obvious.
- The yield curve displayed steepening characteristics, with the ten-year yield rising 3 basis points to 2.675%, and the thirty-year yield briefly climbing 4 basis points to 3.875%. Some 1940s and thirty-year bond varieties faced selling pressure due to demand for curve inversion correction.
- In terms of capital flows, domestic regional banks and life insurers acted as buyers at the short end, with some funds likely coming from reinvestment demand after a large volume of government bonds matured two days earlier. In the afternoon, regional accounts, pension accounts, and offshore accounts became sellers at the short to medium end, highlighting clear divergences between bulls and bears in the market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Elon Musk changes his stance! Tesla (TSLA.US) delays Cybertruck production halt to late summer 2027, just two days after suggesting “refund deposits”
Elon Musk stated that Cybertruck production will be extended until late summer 2027 to clear the order backlog, and Tesla's stock price rose by about 4%.
Japanese dovish policymaker urges "slow down": Price increases are not driven by demand, rate hikes may drag down the economy and inflation
Toichiro Asada, a member of the Bank of Japan's Policy Board, stated that the central bank needs to remain cautious and closely monitor the impact of rate hikes on the economy, as rising interest rates pose the risk of suppressing the inflation trend.
Don't Be Misled by "Instant Purchase, Instant Access": Pro Series Zero Wait Has Been the Norm for Years, UBS Maintains Apple (AAPL.US) Target Price at $340
The waiting time for iPhone 18 Pro is approaching zero, and Duo deliveries are scheduled until the end of January. UBS maintains its forecast for iPhone revenue in the December quarter at $95.1 billions, representing a year-on-year increase of 11.5%.
Crypto prices
More
