Falling stocks and a rising yen raises speculation among investors the central bank will avoid saying anything to add to an outlook for higher rates. It will encourage investors to buy bonds.
The headline figure was not as strong as expected but the overall picture is strong. Bonds are falling as investors focus on the strong parts of the report.
Once a round of purchases by investors targeting bargains wanes, JGB prices will likely fall further going forward.
There was some concern that the core CPI would fall back into negative territory owing to a decline in oil prices, but perhaps we don't have to worry about that scenario, as crude futures have rebounded recently.