Japanese government bonds fell, following the downward trend of US government bonds.

Japanese government bonds fell in the Tokyo market, following the overnight decline in US government bond prices. Japanese government bonds and US government bonds often fluctuate in sync. The decline in Japanese government bond prices may also be influenced by the rise in crude oil prices, which could exacerbate domestic inflation concerns and prompt the Bank of Japan to accelerate its rate hike pace. Meanwhile, investors are focused on the Japanese Ministry of Finance's auction of approximately 2.5 trillion yen in five-year sovereign bonds on Thursday. The yield on 10-year Japanese government bonds rose by 1.5 basis points to 2.880%, the highest intraday level since September 1996. The yield on 20-year Japanese government bonds rose by 1.0 basis point to 3.880%. The yield on 30-year Japanese government bonds rose by 2.0 basis points to 4.020%. The yield on 40-year Japanese government bonds rose by 4.5 basis points to 4.050%.