Core Points - Japan will increase the issuance scale of two-year bonds by 300 billion yen in the fiscal year 2025 [1] - Japan will also increase the issuance scale of five-year bonds by 300 billion yen in the fiscal year 2025 [1] - The total issuance scale of government bonds for the fiscal year 2025 will be raised by 6.3 trillion yen [1]

Bond Market Overview - Bond yields are rising despite weaker-than-expected economic data, particularly in the service sector [1][2] - Two-year and 10-year yields are up several basis points during the session, but down about eight basis points for the week [3] Economic Data Impact - The disappointing service sector data raised questions about both sides of the Federal Reserve's mandate, particularly regarding the labor market [2] - Prices paid in the service sector showed a slight increase, which is not favorable for inflation control [1] Technical Analysis - The NASDAQ index is showing a higher high and a lower low compared to the previous day, indicating potential volatility [4] - A close below the previous day's low could signal a key reversal from all-time highs, which would be technically significant and potentially bearish [4]

Group 1 - The Reserve Bank of New Zealand has lowered the official cash rate (OCR) by 25 basis points to 3.25%, with a cautious tone in its statement, and the decision was made with a vote of 5 in favor and 1 against [1] - Goldman Sachs predicts that tariffs will only cause temporary fluctuations in U.S. inflation, estimating that core personal consumption expenditures (PCE) inflation will rise to 3.6% by the end of 2025, with a cooling labor market and wage growth dropping from over 4% in 2022 to 2.9% currently [1] - The Australian Federal Bank expects the Reserve Bank of Australia to cautiously lower interest rates further, with a 60% probability of a 25 basis point cut in July, down from 70% prior to data release [2] Group 2 - Westpac Bank anticipates that the Reserve Bank of New Zealand will lower the OCR one to two more times before the current cycle ends, with one expected cut in the third quarter, adjusting the highest rate forecast for August to 3% [2] - Goldman Sachs Asset Management analysts believe that market pessimism regarding long-term U.S. Treasury bonds is exaggerated, suggesting investors increase duration as the yield premium on long-term U.S. Treasuries is expected to rise [2] - Analysts note weak demand for Japanese government bonds, leading to rising yields on 30-year bonds, which may impact the transmission mechanism of monetary policy [2]