The prices of Japanese government bonds are fluctuating, due to conflicting signals.

Japanese government bond prices in the Tokyo market fluctuated, with conflicting signals. Fixed income strategists at Mitsubishi UFJ Morgan Stanley Securities said in their commentary that on one hand, the possibility of a significant pullback in Japanese government bond prices on Tuesday after a sharp rise is high, driven by factors such as risk appetite fueled by the rise in the stock market. These strategists added that on the other hand, after the weak fourth quarter real GDP data in Japan and other developments this week, expectations for a rate hike by the Bank of Japan have cooled. The two-year Japanese government bond yield rose slightly by 1 basis point to 1.235%, while the 10-year bond yield dropped by 1.5 basis points to 2.110%.