Japan's ultra-long-term government bonds rebounded amid fluctuations before the election.
Jin10 data reported on July 16, Wednesday, that prices of Japan's ultra-long-term government bonds rose, reversing a selling spree earlier this week triggered by concerns that the upcoming Senate elections might lead to higher government spending. The yield on 30-year bonds fell by 10 basis points to 3.06%; the yield on 40-year bonds also decreased by 10 basis points to 3.38%. Previously, the 30-year yield had climbed to its highest level since 1999 on Tuesday. Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management, stated that investors were likely buying in response to the severe selling that occurred yesterday. Although the market remains cautious about fiscal stimulus policies following the Senate elections, the rapid rise in yields has temporarily halted, and the market is currently waiting for the election results. Michael Brown, senior research strategist at Pepperstone, stated: "With the elections approaching, political tensions..."