A Jiji report today said the Bank of Japan might buy fewer bonds and that seems to be overshadowing low Tokyo CPI today.
Five-year JGBs are up 2.5 bps today and trading at the highest since 2011. Here is the long-term chart:
JPY 5 years
It’s probably not just domestic factors weighing as global bonds have been selling off all week. Still, it’s looking like the worst of all worlds for Japan right now with falling inflation, a weakening currency and higher borrowing rates.