Japanese markets were closed on Tuesday for a public holiday.

Trading was thin, however, with a crucial US Federal Reserve interest rate decision due later in the day.

Many benchmark cash bonds had yet to change hands as of 0515 GMT, including the 10-year note. Money markets are again positioned for a quarter-point rate hike by the Fed, after trimming those expectations to closer to a coin toss earlier in the week.

Japan’s 10-year yield tracks US yields lower on banking crisis fears

“For the time being, worries about the tail risk for a full-blown financial crisis have receded,” Noriatsu Tanji, chief bond strategist at Mizuho Securities, wrote in a note. Benchmark 10-year JGB futures were down 0.72 point at 148.27 as of 0530 GMT, set for their steepest decline since Jan. 13.

The five-year JGB yield added 3 basis points (bps) to 0.09%, while the 20-year yield rose 7.5 bps to 1.06% and the 40-year yield rose 7 bps to 1.53%.

Like the benchmark 10-year JGB, the two-year note and 30-year bond had yet to trade.

They last yielded 0.23%, -0.08% and 1.23%, respectively.