Japanese Government Bonds Rally Intraday as 10-Year Yields Drop 10 Basis Points to 2.775% on July 10

According to Cheung of Oversea Chinese Banking Corp Research, Japanese government bonds rallied in the Tokyo session on July 10 amid prospects of increased fund inflows. The 10-year yield fell 10 basis points to 2.775%, while the 20-year yield declined 11.5 basis points to 3.750%. Japan's Finance Minister Katsunobu Kato indicated the government is seeking to promote GPIF and similar funds' investment in yen-denominated assets. Cheung noted in a research report that this is an appropriate time to reassess domestic and overseas asset allocation, as Japanese government bond yields have recovered to match or exceed U.S. Treasury yields on a foreign exchange-hedged basis.
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