Yields on Japan's super-long-term government bonds have fallen across the board, with some maturities declining by at least 10 basis points, amid market speculation that the nation's public pension fund may step up purchases of domestic debt.

The yield on the 20-year Japanese government bond sank 11.5 basis points to 3.7%, while the 30-year yield dropped 10 basis points to 3.975%. The move was also supported by a rally in U.S. Treasuries, following a statement from Federal Reserve Governor Christopher Waller, who signaled a preference to hold interest rates steady as long as inflation continues to ease.

In a surprising development, the management team of the Government Pension Investment Fund (GPIF) convened an unscheduled meeting. This has fueled expectations that the roughly $2 trillion investor could raise its allocation targets for domestic bonds.