Japan’s 10-year government bond yield fell below 2.1% on Thursday, retreating from near 27-year highs as investors braced for the first auction of super-long-term bonds this year. The Ministry of Finance is set to sell about 700 billion yen in 30-year JGBs following a series of 10-year bond sales that resulted in moderately firm demand. JGB yields have been rallying in recent sessions on expectations that the Bank of Japan will raise interest rates further this year, following hawkish remarks from Governor Kazuo Ueda. Growing fiscal concerns tied to Prime Minister Sanae Takaichi’s massive spending plans also pushed JGB yields higher. Meanwhile, real wages in Japan fell 2.8% in November as inflation far outpaced wage growth for the month, challenging the BOJ’s rate-hiking plans.