Japan's 10-year bonds fall ahead of BOJ's decision

BY Reuters | ECONOMIC | 07/30/25 09:06 PM EDT

TOKYO, July 31 (Reuters) - Japanese government bonds fell in early trading on Thursday as investors awaited signs from the central bank on the pace for potential interest rate hikes.

The 10-year JGB yield rose one basis point (bp) to 1.565%. The five-year yield rose 1.5 bps to 1.105%.

Yields move inversely to bond prices.

Bank of Japan Governor Kazuo Ueda and his colleagues are widely expected to refrain from any rate change at the end of their two-day policy meeting on Thursday. However, analysts anticipate the BOJ may deliver a less pessimistic economic assessment.

Bonds with other maturities were not traded as of 0050 GMT.

(Reporting by Junko Fujita; Editing by Harikrishnan Nair)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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