Core Viewpoint - HSBC's strategy team indicates that the relative attractiveness of Japanese government bonds is diminishing compared to other developed economies' government bonds, predicting an increase in long-term Japanese government bond yields before the upcoming House of Representatives election on February 8, 2026 [1] Group 1: Investment Strategy - HSBC has reduced its allocation to Japanese government bonds to the lowest level within its global developed market sovereign bond asset allocation framework [1] - The report does not disclose specific allocation values or yield forecast ranges, nor does it provide quantitative evidence for the "decreasing attractiveness" [1] Group 2: Market Analysis - Analysts note that Japanese government bonds, traditionally viewed as safe-haven assets, are facing multiple challenges including unclear monetary policy paths, pressures on fiscal sustainability, and rising political uncertainties [1] - The upcoming House of Representatives election is expected to significantly influence Japan's fiscal and monetary policy direction, which may impact global sovereign debt market pricing [1]