ETMarkets.com Synopsis Japanese government bond prices declined as a rally in AI-related equities reduced demand for safe-haven assets.
The benchmark 10-year JGB yield rose to 2.795%, while shorter- and longer-term yields mostly increased.
Investors are awaiting policy signals from the US Federal Reserve and Bank of Japan, particularly guidance on the timing of Japan’s next interest-rate hike.
By Anupam Nagar, ETMarkets.com Oct 27, 2026, 01:43:00 PM IST Follow us Japanese government bond (JGB) prices fell on Tuesday as a rebound in artificial intelligence-related shares reduced demand for safe-haven assets, while investors awaited signals from major central bank meetings scheduled for this week, Reuters reported.ADVERTISEMENT The benchmark 10-year JGB yield rose 1.5 basis points to 2.795%.
Bond yields move inversely to prices.According to Reuters, Japanese and US equities rallied sharply as optimism returned to the AI sector ahead of quarterly results from major technology companies, including Alphabet and Microsoft.
The gains came as investors positioned themselves ahead of the US Federal Reserve's monetary policy announcement on Wednesday.
A look at key stakeholders US Treasury yields declined overnight, reflecting investor positioning ahead of the Fed's decision.In Japan, attention is focused on the Bank of Japan's October 29-30 policy meeting.
The central bank is widely expected to keep interest rates unchanged after raising its policy rate to 1.25% in September.
Former BOJ Governor Haruhiko Kuroda indicated that he expected the central bank to consider raising interest rates by 25 basis points at each upcoming policy meeting to bring borrowing costs closer to neutral levels.ADVERTISEMENT ADVERTISEMENT
The five-year yield climbed 1.5 basis points to 2.240%.ADVERTISEMENT Investors are expected to closely monitor this week's central bank decisions and corporate earnings for clues about the outlook for interest rates, inflation and risk appetite.
