TOKYO: Japanese government bond yields rose on Tuesday, tracking overnight US Treasury yields higher, as a surge in energy prices following the Russia-Ukraine conflict stoked concerns of broadening inflationary risks.
The 10-year JGB yield rose 1.5 basis points to 0.155% and the 20-year JGB yield jumped three basis points to 0.640%.
Oil prices have hit 14-year highs and Russia warned that prices could surge to $300 a barrel and it might close the main gas pipeline to Germany if the West halts oil imports over the invasion of Ukraine.
The benchmark US 10-year Treasury yield rose slightly overnight after touching its lowest level in two months.
The 30-year JGB yield rose four basis points to 0.865%, after touching one-month low in the previous session.
The 40-year JGB yield climbed 4.5 basis points to 0.910%.
The yields rose also after an auction for five-year Japanese government bonds witnessed moderately firm demand, with bids worth 3.29 times the amount sold, lower than a ratio of 3.39 times at the previous auction.
The two-year JGB yield rose 0.5 basis point to minus 0.050% and the five-year yield climbed one basis point to minus 0.005%. Benchmark 10-year JGB futures fell 0.17 point to 150.92, with a trading volume of 19,709 lots.
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