Citigroup: Japan 30-year government bond yield expected to remain volatile in range.

Tomohisa Fujiki of Citigroup Investment Research stated in a report that the composite yield of 30-year Japanese government bonds may remain in the range of 3% to 3.2% in the near future. The strategist said, "We believe that regardless of the budget size, a reduction in issuance size will provide support for ultra-long-term bonds." Citigroup predicts that the size of each sale of 20-year and 30-year Japanese government bonds will decrease by 100 billion yen each time, and they expect the pace of issuance of 40-year Japanese government bonds to slow down next year. He said that the market may continue to be influenced by dynamics in the United States, but with the confirmation of GDP contraction in July-September, market pricing for a rate hike by the Bank of Japan in December should weaken. According to Tradeweb's data, the yield on 30-year Japanese government bonds rose by 0.3 basis points to 3.136%.