Some investors bought back debt that they sold on speculation consumer prices would post a gain. |
The auction showcased disappointing demand. Rallying stocks are building sentiment that Japan's economy will sustain a reasonably good pace of growth, signaling higher yields. |
The cut in the debt sales is a positive for bonds. The improved fiscal situation with a stricter cap on sales lightens up the sentiment in the market. |
Yields could go above 2 percent in the short-term. People are focusing on the U.S. because they think it's driving the global economy's recent robust pace of growth. |