Japanese government bonds edged lower due to possible position adjustments ahead of the Japanese general election.

The price of Japanese government bonds edged lower in early trading in Tokyo, possibly due to position adjustments ahead of the general election on February 8th. The yield on 10-year Japanese government bonds rose by 1 basis point to 2.265%. Nomura's foreign exchange research analysts commented that media reports strongly favor the ruling Liberal Democratic Party winning a majority in the lower house. These analysts stated, "If the ruling coalition wins more than two-thirds of the seats, it will enhance Prime Minister Sanae Takaichi's decision-making power, potentially initially sparking trades in favor of Takaichi." They added that the pressure to ease fiscal and monetary policies may decrease with potential support from the opposition parties, which could gradually stabilize Japanese government bonds.