Japanese government bonds show mixed price movements as markets weigh BOJ rate increase prospects following Governor Kazuo Ueda's speech. The central bank may prioritize inflation concerns over growth risks, potentially raising rates if price pressures intensify, according to the Bank of Japan's latest policy stance.

Ueda's remarks Wednesday laid groundwork for a possible June rate hike, economists from Barclays suggest. The central bank appears ready to look past Middle East uncertainty if inflation poses a greater threat to Japan's economy than slowing growth, creating uncertainty for bond investors positioning for potential policy shifts.

Five-year JGB yields ticked up 1 basis point to 1.410% while 10-year yields remained steady at 2.640%. Barclays analysts maintain their June rate hike call, noting Ueda "did as much groundwork as possible at this stage" toward policy normalization, signaling the BOJ may act sooner than markets expected amid persistent inflationary pressures.