Japan's 10-year bond yield reverses course to fall on portfolio rebalancing need

Japan's benchmark 10-year government bond yield fell 3 basis points to 2.595 percent, reversing an earlier rise, as investors rebalanced portfolios at quarter-end following a record 35 percent surge in the Nikkei this quarter. Separate data showed annual core inflation in Tokyo accelerated in June, keeping the Bank of Japan on track to consider further interest rate hikes. Yields across the curve softened, with the 30-year JGB yield down 2 bps to 3.805 percent.