TOKYO: Japanese government bond yields rose on Tuesday, tracking US Treasuries overnight, with the yield curve widening to its steepest level in six-and-a-half years.
The 30-year JGB yield rose 2.5 basis points to 1.305%, while 20-year yields added 1.5 basis points to 0.935% as of 0515 GMT.
At the short end, the two-year yield advanced 1.5 basis points to -0.055%.
The spread between two- and 30-year yields at one point reached 136.2 basis points, the widest since December of 2015.
Bonds have become more volatile due to lower demand towards the end of the quarter.
“Liquidity has decreased and volatility has increased,” said Resona Holdings chief strategist Shinsuke Kajita.
“It is a difficult environment to buy things like super-long bonds.” Meanwhile, the five-year JGB yield rose 1 basis point to 0.050%.
JGB yields track US peers higher, equities rally weigh
The 10-year yield was the most subdued, edging up 0.5 basis point to 0.235%, retaining a 1.5 basis-point cushion to the Bank of Japan’s policy ceiling.
Benchmark 10-year JGB futures fell 0.09 point to 148.43.
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