Investors may stay cautious about buying bonds before the consumer price report and the central bank's forecast. |
It's difficult to buy bonds, especially five-year and shorter notes, before the growth report. The economic recovery is well under way and the market is pricing in chances for a rate increase later this year. |
Some selling is coming through the bond market because of stocks and the consumer price report. Yields will probably have a bias to rise toward June because investors are becoming more alert to the chances of a policy shift. |
The drop-off in Treasuries can't be ignored. That is contributing to weaker sentiment in Japanese bonds. |
Yields reached an attractive level for buyers. Yields rose too much as Fukui commented, and we'll probably see some adjustments in their levels. |