Barclays said that the Japanese government bond market is currently likely to trade within a range.

Jin10 data reported on May 9, Barclays stated that the Japanese government bond market may currently trade within a range. Committee members indicated that market expectations for a Bank of Japan interest rate hike may take some time to recover, as this may require more certainty in US-Japan trade negotiations and US policies. From the perspective of risk-adjusted yield spread reduction, the attractiveness of the 10-year Japanese government bond yield should support range trading. Although there may be upward potential for short-term bond yields if the Bank of Japan raises rates before January 2026, short-term and medium-term bonds may remain in a range of fluctuations for some time, as this depends on the results of trade policy.