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[US Treasury Yields Surge, Japanese Bonds Weaken] ⑴ Japanese government bond market closed weaker on Tuesday, with the yield on the benchmark 10-year bond rising to around 3.03%, a roughly 30-year high. ⑵ The yield on the US 10-year Treasury bond broke through the psychological barrier of 5% again during the Asian midday session, triggering a brief sell-off in Japanese government bond futures, with the most active contract briefly falling below 124.90. ⑶ The auction results for Japanese 20-year government bonds were generally mediocre, but the bid-to-cover ratio was higher than the recent average, indicating that some investors were willing to buy on dips, and futures briefly rebounded after the auction. ⑷ Some market participants mentioned that a US investment bank made significant purchases in the auction, possibly backed by a large Japanese bank, while a public account also purchased 20-year government bonds in the secondary market. (5) However, as the yield on the 10-year US Treasury note rose above its New York session high, Japanese government bond futures softened again. The 5-year yield rose to around 2.315% at one point, while the 10-year, 20-year, and 30-year yields continued to rise before the close. (6) Significant selling pressure also appeared on 30-year bonds that were not recently issued. The yield on one bond maturing in December 2054 rose by about 10 basis points from the previous day before slightly retreating. (7) A Japanese brokerage trader stated that bargain hunting was not strong that day. Some support could be seen at the short end, but trading was thin on 10-year and longer-term bonds. (8) Overall, market sentiment was suppressed by high US long-term yields, and Japanese government bonds lacked strong local buying support. The focus going forward will be on whether the US Treasury yield can stabilize below 5% and the strength of support for Japanese long-term bonds.