Japanese government bonds fell as crude oil prices rose.

In front of the Tokyo market, as oil prices rise, Japanese government bond prices fall. This may exacerbate inflationary pressure in Japan and lead the Bank of Japan to accelerate its rate hike pace. At the same time, investors may focus on the auction of around 600 billion yen of 30-year Japanese government bonds by the Japanese Ministry of Finance today. Tomohisa Fujiki of Citigroup Investment Research said in a research report, "We expect the auction results to be strong due to domestic investor demand." The interest rate strategist added, "The improvement in supply and demand is largely due to the reduction in the issuance size." The yield on 10-year Japanese government bonds rose by 3 basis points to 2.695%. The yield on 20-year Japanese government bonds rose by 3.0 basis points to 3.590%. The yield on 2-year Japanese government bonds rose by 0.5 basis points to 1.420%.