TOKYO: Japan’s 10-year government bond yields fell on Wednesday, tracking US Treasury yields lower, while caution ahead of overseas central bank meetings and key economic data capped demand for debt.
The 10-year JGB yield fell 0.5 basis point to 0.240% and the 20-year JGB yield fell 0.5 basis point to 0.765%.
The European Central Bank will meet on Thursday and markets are expecting it to at least lay the groundwork for rapid rate rises, if not begin them with a small hike.
That will be followed by US consumer price data due on Friday and the US Federal Open Market Committee next week.
“Market participants are cautiously awaiting the movement of the US rates following the ECB meeting and the US consumer data, as well as the FOMC,” said Katsutoshi Inadome, senior bond strategist at Mitsubishi UFJ Morgan Stanley Securities.
US Federal Reserve is expected to raise its benchmark funds rate by 50 basis points this month and again in July.
Long-dated US Treasury yields tumbled overnight after Target Corp warned about excess inventory and said it would cut prices, boosting bets that the worst of inflation may be in the past.
JGB yields tick higher, tracking Treasuries amid Fed tightening worries
The 30-year JGB yield was flat at 1.055%.
The 40-year JGB yield rose 0.5 basis point to 1.140%.
The two-year JGB yield was flat at -0.075%. The five-year yield fell 0.5 basis point to minus 0.010%.
Benchmark 10-year JGB futures rose 0.04 point to 149.55, with a trading volume of 17,642 lots.
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