0202 GMT - The JGB yield curve is flattening in two- to 40-year segment, DBS Group Research's Eugene Leow says in commentary. "There is a steady grind higher in rate hike pricing for the BOJ even as the [Feb. 8] elections are projected to be clearly in favor of the LDP and [PM] Takaichi," the senior rates strategist says. Also, "USDJPY is trading meaningfully below 160, easing inflation fears somewhat," Leow says. The "worst may be over" for ultralong JGB yields, though front-dated to 10-year yields will probably be "buoyant," Leow adds. The yield on two-year JGBs is up 0.5 bp at 1.275%, while the 40-year yield is down 1 bp at 3.930%. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

February 04, 2026 21:02 ET (02:02 GMT)

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