Japan takes action, both the Japanese and US bond markets rebound, the US dollar against the Japanese yen rises significantly, and gold falls back to 3300

Japan's emergency measures to stabilize the bond market not only triggered a rebound in the Japanese bond market but also delivered a "big gift" to the U.S. market, with U.S. stocks, bonds, and currencies all rising. Dragged down by a stronger dollar, spot gold fell to around $3,300. Core market trends:

S&P 500 futures rose 1.1%, Nasdaq 100 futures rose 1.2%; Euro Stoxx 50 futures were basically flat;

The Tokyo Stock Exchange index rose 0.7%, and the Australian S&P/ASX 200 index rose 0.6%;

USD/JPY rose 0.5%, reported at 143.50;

Bitcoin fell 0.5%, reported at $109,097.87; Ethereum rose 1.6%, reported at $2,608.5;

The yield on Japan's 20-year government bonds fell 6.9% to 2.335%, while the yield on 10-year U.S. Treasury bonds fell 1.24%, reported at 4.455%;

Spot gold fell 1%, reported at $3,308.

On May 27, media reports citing sources indicated that the Japanese Ministry of Finance sent a survey to market participants seeking opinions on the appropriate scale of government bond issuance. There were also reports that the Ministry of Finance would consider adjusting the composition of the current fiscal year's bond issuance plan, which ends in March 2026.

This immediately triggered a chain reaction in the global bond market, with bond yields in Japan, South Korea, the UK, the US, and Germany all falling. Among them, the yield on Japan's 20-year government bonds plummeted by 19.5 basis points, marking the largest single-day decline. The yield on 10-year U.S. Treasuries fell by 5 basis points.

In recent weeks, the Japanese bond market has faced significant selling pressure, with bond yields soaring to historical highs. Last week's auction of 20-year bonds saw the weakest demand in over a decade, while the upcoming auction of 40-year bonds this Wednesday has traders on edge.

George Saravelos of Deutsche Bank previously warned that the rise in Japanese yields means U.S. Treasuries are facing increasingly fierce competition, and now that competitive pressure is easing. Michael Brown, a strategist at Pepperstone Group, pointed out:

"The potential reduction in issuance provides strong support for U.S. Treasuries. For investors seeking to purchase long-term debt, the decrease in Japanese government bond supply may force them to turn to the U.S. Treasury market."

【15:22】

UK government bonds opened higher, with long-term bonds leading the way, and UK government bond yields fell by 3-9 basis points, with the 30-year yield down 9 basis points to 5.39%, marking a one-week low.

【15:15】

Japan's actions have triggered a chain reaction in global markets. In the stock market, both S&P 500 and Nasdaq 100 index futures jumped 1%.

In the foreign exchange market, after the news broke, the Japanese yen fell significantly, and the US dollar index strengthened, reaching a high of 99.21.

Spot gold fell more than 1%, approaching the 3300 USD mark.