Xin Hua Cai Jing·2026-01-22 14:21Group 1 - The core viewpoint of the articles indicates that Japanese government bond yields have recently experienced fluctuations, with a notable decline from historical highs, as investors await the Bank of Japan's interest rate decision and potential hawkish statements from Governor Kazuo Ueda [1][2][3] - The 10-year Japanese government bond yield fell by 4 basis points to 2.24%, while the 30-year yield decreased by 10 basis points to 3.67%, reflecting a rebound after excessive selling earlier in the week [1] - UBS reports that the rise in Japanese bond yields is primarily driven by market expectations of future interest rate increases and an increase in term premiums, with the 30-year yield rising over 40 basis points since the beginning of the year [2] Group 2 - Foreign investors have significantly reduced their holdings in the Japanese bond market, nearly halving their investments as global yields rise, while the Bank of Japan's share of outstanding bonds has fallen below 50% for the first time in eight years [2] - UBS suggests that if the Bank of Japan responds hawkishly to fiscal expansion, the yield curve for 10 to 30-year bonds may flatten, potentially providing better entry points for investors after uncertainties surrounding elections and monetary policy are resolved [3] - Sumitomo Mitsui Trust Bank plans to double its domestic sovereign debt holdings once market yields stabilize, currently holding approximately 10.6 trillion yen (about 67 billion USD) [3]