Japanese government bond futures rose as market expectations are that the Bank of Japan may pause raising interest rates.

Japanese government bond futures rose in the Tokyo market before the market, as the market expected the Bank of Japan to possibly pause its interest rate hike cycle. Analysts at InTouch Capital Markets commented that according to local media reports, Japanese Prime Minister Sanae Takaichi expressed reluctance to further raise interest rates in a meeting with Bank of Japan Governor Haruhiko Kuroda. These analysts added, "The question for the market is how she will achieve this goal. With several members of the Bank of Japan Policy Board set to be replaced, Governor Kuroda may find himself more isolated than he would hope for, with less internal support than he desires." The yield on the 5-year Japanese government bond fell by 2.5 basis points to 1.57%. The yield on the 2-year Japanese government bond also fell by 2.5 basis points to 1.215%.