Japanese Bond Futures Extend Decline Amid Global Rate Surge

The Japanese bond futures market experienced another decline on September 24th, with the lead September contract trading at 126.40 yen, down 14 sen from the previous weekend.

This downward trend is attributed to the surge in U.S. long-term yields, which have been fueled by a widening U.S. fiscal deficit and concerns over increased Treasury supply.

The benchmark 10-year U.S. Treasury yield closed at 4.73% on Friday, August 21st, up 0.03 percentage point from the previous day.

This trend is not isolated to the United States; long-term yields in major economies such as the UK, France, and Germany have also reached their highest levels in over a decade.