Japan is preparing for a 20-year government bond auction scheduled for Thursday, which has drawn heightened attention amid concerns over rising yields and a looming national election. Investors are exhibiting cautious sentiment as they assess inflation and interest rate outlooks in the lead-up to the auction. Benchmark 10-year Japanese Government Bond (JGB) futures have declined slightly by 0.04 points in early trading, reflecting this cautious stance. The auction and its outcomes are being closely watched as they could signal market expectations regarding Japan's fiscal policy and economic direction ahead of the election.