Japanese government bonds show divergent trends, possibly supported by expectations of unchanged Bank of Japan policy

Two members of the Barclays Fixed Income, Currencies, and Commodities Research Department stated in a research report that “it seems unlikely there will be a clear prospect of stability in the Middle East situation by the April meeting.” These members mentioned that, furthermore, amid deteriorating sentiment, Bank of Japan Governor Kazuo Ueda continues to reiterate two-way risk. They added: “Given that confidence/risks around its core outlook are difficult to assess appropriately, the Bank of Japan appears more likely to delay a rate hike until June.” The two-year Japanese government bond yield rose by 1 basis point to 1.380%, while the 10-year Japanese government bond yield remained unchanged at 2.415%.