ETMarkets.com Synopsis Japanese government bond yields remained largely steady ahead of the Bank of Japan’s policy decision on Friday, supported by strong demand at a two-year bond auction and gains in US Treasuries.
Markets expect the BOJ to hold rates steady, while a Reuters poll points to a possible 25-basis-point hike in December.
By Anupam Nagar, ETMarkets.com Oct 29, 2026, 02:50:00 PM IST Follow us Japanese government bonds were largely steady on Thursday, supported by strong demand at an auction of two-year notes and gains in US Treasuries after the Federal Reserve kept interest rates unchanged, Reuters reported.ADVERTISEMENT Investors remained cautious ahead of the Bank of Japan's monetary policy decision on Friday, with markets widely expecting the central bank to maintain its current interest rates.
The move provided support to Japanese government bonds by easing concerns about a more aggressive tightening of monetary policy.
The benchmark two-year Japanese government bond yield fell 0.5 basis point to 1.895%, reversing an earlier modest increase following the auction results.
Bond yields move inversely to prices.Demand at the two-year bond auction strengthened, with the bid-to-cover ratio rising to 4.03 from 3.89 at the previous month's sale, indicating improved investor appetite for Japanese government debt.ADVERTISEMENT Other maturities were mixed.
The 10-year JGB yield edged up 0.5 basis point to 2.83%, while the five-year yield remained unchanged at 2.265%.
The 30-year yield rose 0.5 basis point to 3.88%.
