Ten-year JGB yields climb to 3-week high after US data

TOKYO: Japanese government bonds slipped on Monday, with the 10-year yield hitting a three-week high, after US jobs and manufacturing data showed a recovery in the world's largest economy remained on track.

US employers added 157,000 jobs last month and 127,000 more jobs were created in November and December than previously reported, while the pace of growth in the US manufacturing sector picked up in January to its highest level in nine months.

"That's the biggest driver on the JGB yields today," said Yuya Yamashita, rates strategist at J.P. Morgan in Tokyo.

The 10-year yield rose 2.5 basis points to 0.795 percent to its highest level since Jan. 15, while 10-year bond futures dropped 28 ticks to 143.78, hitting a three-week low and breaking below their 20-day moving average of 144.07.

Yamashita cited Tuesday's auction of 2.4 trillion yen ($25.9 billion) worth of 10-year bonds as another factor for the sector's underperformance on Monday morning.

Yields on 20-year debt added 1.5 basis points to 1.790 percent after trading as much as 1.795 percent to touch a three-week high. The 30-year yield also put on 1.5 basis points, to 2.00 percent.