Benchmark Yield at Zero May Mark End of Japan Bond Futures Slide

Benchmark 10 year yields is one of the main drivers of Japan bond futures. The 10-year yield has risen about 8 basis points so far which turned 0 from being negative since March 2019 while Japanese bond futures have fallen to the lowest since one year and are down over 2% from highest in late September, as foreign investors reduce their holdings. According to Nomura’s Nakashima Futures selling may continue as long as Japanese bonds are in a downtrend implying cash bonds may lead to a stop in selling futures.
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