Group 1 - The auction of 10-year Japanese government bonds showed strong performance, with a bid-to-cover ratio of 3.51, higher than the 12-month average of 3.14, indicating reduced upward pressure on long-term bond yields due to weakened expectations of interest rate hikes by the Bank of Japan [1][4] - Following a poorly received 20-year bond auction in May that led to record high yields for ultra-long bonds, the Japanese government has adjusted its bond issuance plan to stabilize demand, maintaining the issuance volume of 10-year bonds while reducing that of 20, 30, and 40-year bonds [4] - The sentiment in the Japanese bond market appears positive as the Ministry of Finance's decision to reduce ultra-long bond issuance has been well-received, although caution remains regarding the upcoming 30-year bond auction [4][5] Group 2 - The 10-year Japanese government bond serves as a benchmark for long-term loan rates, significantly impacting mortgage rates and corporate borrowing costs [4] - Despite the strong performance of the 10-year bond auction, yields on 30 and 40-year bonds have not significantly declined, reflecting market caution ahead of the 30-year bond auction [5] - The recent short-term survey indicated a significant decline in confidence within the automotive sector, which may influence the Bank of Japan's decisions regarding interest rates [4]

Group 1 - The 30-year Japanese government bond yield increased by 0.5 basis points to 2.935% [1] - The 40-year Japanese government bond yield rose by 1 basis point to 3.1% [1]

Core Viewpoint - The Japanese Minister of Economic Revitalization, Akizawa Ryozo, stated that there will be no comments on the daily fluctuations of Japanese government bond yields and emphasized that policy should not be based on these daily movements [1] Group 1 - The Minister's position indicates a focus on long-term economic strategies rather than short-term market reactions [1] - The statement reflects a broader approach to economic policy that prioritizes stability over immediate responses to market volatility [1]

Core Viewpoint - The Governor of the Bank of Japan, Kazuo Ueda, stated that the fluctuations in short-term and medium-term Japanese government bond yields typically have a greater impact on the economy than changes in ultra-long-term yields [1] Group 1 - Short-term and medium-term bond yield changes are more influential on the economy compared to ultra-long-term yield changes [1]

Group 1 - The Nikkei 225 index rose over 2% in early trading [1] - The yield on Japan's 5-year government bonds increased by 9 basis points to 1% [1] - The yield on Japan's 10-year government bonds rose by 8 basis points to 1.465% [1] - The Seoul Composite Index in South Korea opened slightly lower by 0.2% [1]