Global bond market sentiment is fragile. The auction of Japan's 10-year government bonds will be an important focus.

According to Bloomberg analysis, the focus of today's issuance of 10-year Japanese government bonds will be on the bid-to-cover ratio. If the ratio falls below 3.0 again after dropping in November, it could raise concerns among investors. Despite the fact that Monday's sell-off of Japanese government bonds seems to have digested expectations for the auction of 10-year Japanese bonds, with the Bank of Japan meeting just over two weeks away, pressure on long-term government bond yields may result in a less optimistic outcome for the bond auction.