Japanese bond yields rise as safe-haven buying triggered by AI selloff pauses

TechFlow reported on November 09 that Japanese government bond yields rose on Monday, partially reversing last week's declines. Large-scale selling of AI-related stocks last week boosted demand for safe-haven assets. The 5-year JGB yield rose 5.5 basis points to 2.1%; the 10-year JGB yield rose 6.5 basis points to 2.7%. As tech stocks plunged further last Friday, investors sought traditional safe-haven assets, pushing Japanese government bond yields to multi-month lows.

Keisuke Tsuruta, senior bond strategist at MUFG Morgan Stanley Securities, wrote in a report: "Uncertainty around AI-related investments remains strong, and the impact of risk aversion still warrants close monitoring. However, because yields fell too quickly toward the end of last week, we also see the possibility of a short-term rebound correction."

Source: TechFlow