Core Viewpoint - Japan's long-term government bond yields are rising from a three-week low, with investors closely monitoring the upcoming 40-year bond auction for signs of demand recovery [1] Group 1: Market Reactions - The Japanese Ministry of Finance may reduce the issuance of ultra-long-term bonds in response to the recent surge in yields [1] - The Bank of Japan's Governor, Kazuo Ueda, indicated that the central bank will monitor fluctuations in ultra-long-term yields to assess their potential impact on shorter-term yields, which have a greater effect on economic activity [1] Group 2: Market Analysis - Mizuho noted that the significant drop in long-term rates may be attributed to the inherently low liquidity in the ultra-long-term segment [1] - If there is indeed a reduction in issuance and market sentiment improves, there appears to be further room for decline in yields [1] Group 3: Upcoming Events - The results of the 40-year Japanese government bond auction will be announced at 11:35 AM Beijing time [1]