In Tokyo trade, Japanese government bonds rose on prospects of increased
inflows. Frances Cheung, head of FX and rates strategy at OCBC Group Research,
said in a note that Japan's finance minister Katayama is seeking to encourage
GPIF and similar funds to increase investment in yen assets, making now an
appropriate time to reassess domestic versus offshore allocations. Cheung added
that on a currency‑hedged basis the rebound in JGB yields has been comparable
with, or even superior to, US Treasures. The 10‑year JGB yield fell about 10bp
to 2.775%; the 20‑year yield dropped about 11.5bp to 3.750%.