Barclays: Japanese government bond market tends to stabilize, influenced by expectations of Japanese policy measures.

Three members of Barclays FICC research department said that the Japanese government bond market has returned to calm, as the market expects Tokyo to potentially implement policy measures to address the recent surge in Japanese government bond yields. These members said in a report that possible measures could include increasing the Bank of Japan's purchases of Japanese government bonds, as well as adjusting debt issuance or bond repurchases. They said that the focus now turns to communication at the Bank of Japan meeting ending on Friday, as well as communication by Japanese authorities on potential reductions in ultra-long Japanese government bond auctions and bond repurchases. The 10-year Japanese government bond yield fell by 5 basis points to 2.235%.