Japanese government bond prices rose as the likelihood of the Bank of Japan raising interest rates early decreased.

Due to the weakening prospects of the Bank of Japan raising interest rates ahead of schedule, Japanese government bond prices rose during the Tokyo trading session. Two members of the SMBC Nikko Securities Financial Markets and Economic Research Department stated in their comments that Bank of Japan Governor Haruhiko Kuroda and Prime Minister Naoto Kan held a meeting on Monday, less than three months after their last meeting. The interval between this meeting was shorter than the average of four and a half months for previous meetings between the Bank of Japan Governor and the Prime Minister. These two members stated, "Therefore, there is speculation that Naoto Kan is trying to persuade Haruhiko Kuroda not to raise interest rates prematurely." The two-year Japanese government bond yield fell by 1.5 basis points to 1.250%, and the 10-year government bond yield fell by 4.5 basis points to 2.165%.