Japanese bond prices climb third day as yields draw safe‑haven buyers

Japanese government bond (JGB) prices increased for a third consecutive session on Tuesday, driven by attractive yields and a surge in safe‑haven buying. The rise came after a sharp fall in JGB yields and a rally in the yen earlier in the day. Record demand at a 20‑year JGB auction lifted the market further, while global sovereign yields moved lower. Economists surveyed expect the Bank of Japan to lift its policy rate to 1.50% in December, although they see October rates staying unchanged. The combined effect of falling yields, stronger yen and strong auction demand signaled renewed investor confidence in Japanese debt. ## Context Japan’s bonds are a key safe‑haven asset; higher yields make them more appealing to investors seeking returns. A rate hike by the Bank of Japan would mark a shift from its long‑standing ultra‑low‑rate stance.