Japan’s 10-year government bond yield fell to around 2.9% on Tuesday, nearing six-week lows after the latest 20-year bond auction attracted record demand, reflecting strong investor interest in higher-yielding debt. Japanese yields have climbed to multi-decade highs earlier this month following a global bond selloff driven by persistent energy-related inflation amid the conflict in the Middle East. Japan’s worsening fiscal outlook also contributed to rising yields as Prime Minister Sanae Takaichi pursued expansionary fiscal policies, although she has repeatedly sought to reassure markets that the government would avoid adding to the debt burden. On the monetary policy front, the Bank of Japan is widely expected to keep interest rates unchanged next week, with Governor Kazuo Ueda anticipated to provide further guidance on the timing of the next rate hike.