Japanese government bonds fell sharply

Japan’s 10-year government bond yield fell to its lowest level since June as a sharp technology-stock selloff on Wall Street drove institutional investors into safe-haven Japanese government bonds (JGBs). The drop in the benchmark yield came as steep global equity losses overshadowed expectations that the Bank of Japan (BoJ) will raise interest rates. The move highlights how quickly risk aversion can override domestic policy signals in Japan’s bond market. Investors will watch whether the global tech selloff deepens and whether BoJ rate-hike expectations recover once equity markets stabilize.