Japan Yields Slip, Casting Doubts on 10-Year Bond Auction Demand

Japan’s government bond yields fell on Monday morning following a weaker-than-expected US employment report, raising concerns about demand at a 10-year debt sale on Tuesday.

The 5-year yield dropped as much as 9 basis points to 0.99% and the 10-year rate was down 8.5 basis points to a low of 1.465%. The moves come after US Treasuries surged on Friday as a surprisingly soft payroll report saw traders ramp up their bets on Federal Reserve interest-rate cuts this year.