TOKYO: Japanese government bond prices slipped on Monday, led lower by US Treasuries after a much stronger-than-expected US labour market report prompted more investors to bet on a Federal Reserve rate increase next month.
US Treasury yields jumped after the jobs report, with the 2-year yield marking its highest level in 5-1/2-years.
A strong performance by Japanese equities also added to pressure on bond prices.
The Nikkei stock index gained 2 percent to 19,642.74 for its highest close since August 20.
The Bank of Japan on Monday offered to buy 400 billion yen ($3.24 billion) of 1-year to 3-year JGBs, 400 billion yen of 3-year to 5-year JGBs, 240 billion yen of 10-year to 25-year JGBs and 140 billion yen of 25-year to 40-year JGBs under its asset purchase programme, with results in line with market expectations.
The yield on the 10-year cash JGB added 2 basis points to 0.335 percent, after touching a session high of 0.340 percent. The 10-year JGB futures price ended down 0.17 of a point at 148.20.
In the superlong zone, the yield on the 30-year JGB rose 2.5 basis points to 1.395 percent.
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