A rally in equities weighed on sentiment, while there was some caution ahead of the 30-year debt auction today.
Following the overnight rises in long-term interest rates in the US, there was an early sell-off here.
JGB prices got off a firmer start today aided by the bullish tone on the US Treasury market overnight, but then they fell back after the sharp gains in stock prices here.
JGB prices dropped on firmer stock prices, a drop in US Treasury prices overnight and a pullback in the yen against the dollar.
There was some buying back in the early morning, but the market remains top-heavy, as market players are waiting for the results of auction of 10-year bonds this afternoon.
Basically, fears about possible higher interest rates in the near future have not been erased.
The market performance is very dull without clear direction and the equities market is faring well today.
The market has moved little. We don't see much buying at this time of the year as the book-closing for the fiscal year-end nears.
Players are also awaiting for the Bank of Japan's six-monthly (economic) outlook report on Friday.
Many investors were sidelined awaiting the outcome of the 20-year JGB auction while firmer equity prices also kept market participants at bay.
