Japanese government bonds fell, following the downward trend of US treasuries.

Japanese government bonds fell in pre-market trading in the Tokyo market, following the overnight price decline in U.S. Treasuries. Japanese government bonds and U.S. Treasuries often move in sync. The Japanese Ministry of Finance is set to auction about 2.6 trillion yen of 10-year sovereign securities on Tuesday. Tomohisa Fujiki of Citigroup Investment Research said in a research report, "We expect buying pressure from pension funds due to rebalancing needs, as stock prices rise." The interest rate strategist added, however, that due to foreign exchange intervention, "the yen has appreciated, which will marginally reduce demand for yen bonds." The 10-year Japanese government bond yield rose by 2 basis points to 2.540%, its highest intraday level since June 1997.