Unprecedented Trading Halt in Japan's 10-Year Bond Market

In a rare event, the yield on the 10-year Japanese government bond remained untraded throughout the entire day yesterday, marking the first occurrence since March 27, 2023. The bond's return stood firm at 1.49% by Friday's close and remained unchanged at today's opening. This trading pause coincided with Japan's Mountain Day, a new public holiday that also saw the Nikkei 225 index taking a break.

Subsequent Movements in Japan's Bond Yields

Following the holiday, the 10-year note's return saw a slight increase of 1.5 basis points, reaching 1.505% by 12:12 pm CET. Meanwhile, the 30-year bond yield experienced a more significant rise of 2.7 basis points to 3.10% by 12:14 pm CET. The 2-year bond remained relatively stable, with a minimal increase of 0.5 basis points to 0.777% by 12:11 pm CET.