Japanese Government Bonds (JGBs) have edged higher, following gains in U.S. Treasurys amid possible position adjustments ahead of the Bank of Japan's (BOJ) upcoming policy decision. The Japanese yen showed mixed movements but rose 0.4% against the U.S. dollar prior to the BOJ announcement. In the U.S., the 2-year Treasury yield fell sharply by as much as 24 basis points during the day, reaching around 3.75% to 3.8%, marking its largest single-day drop in a year and moving 50 to 75 basis points below the Federal Funds rate. This decline was influenced by a weaker-than-expected Nonfarm Payrolls (NFP) report and downward revisions. The 10-year Treasury yield also declined to approximately 4.216%, its lowest level since April. Meanwhile, the U.S. 2-10 year yield curve steepened by 7 basis points. In the UK, 5-year gilt yields dropped by 2 basis points to 3.982%, their lowest since early July. These movements indicate a risk-off sentiment in global fixed income markets as investors await central bank actions and economic data.