Naomi Hasegawa Investors Quotations

US Treasuries, particularly long-term bonds, were robust on Friday, when the Japanese market was closed. Some bond investors view the surge in stocks as bubble while some investors take comfort in the view that the zero-interest rate policy will continue even after the Bank of Japan lifts ultra-loose monetary stance.

Many investors are reluctant to trade actively before the central bank starts its two-day meeting Wednesday.

Gains in stocks will help push down bonds and I don't think investors will aggressively buy after yesterday's rally.

Trading in future contracts led the market today, with bullish sentiment there gradually spreading to cash bonds. This is probably because some investors took heart from a pullback in the equity market here.

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 news could be a trigger to buy bonds. Investors dislike uncertainty.

Once a round of purchases by investors targeting bargains wanes, JGB prices will likely fall further going forward.

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.