Japan’s 10-year govt bond futures fall amid uncertainties of US inflation

TOKYO: Japan’s 10-year government bond futures fell on Friday amid uncertainties about the pace of US inflation, while sentiment was weakened after US Treasury yields rose overnight.

Benchmark 10-year JGB futures fell 0.07 point to 150.26, with a trading volume of 13,309 lots.

Benchmark US Treasury yields hit a more than two-week high on Thursday as investors bet the US Federal Reserve will press on hiking rates as inflation remains high, even though price pressures are showing signs of abating.

Yields on the 10-year JGBs fell 0.5 basis point to 0.185%, underpinned by the Bank of Japan’s daily offers to buy unlimited amounts of bonds with the same maturity.

The 20-year JGB yield fell 0.5 basis point to 0.780% and the 30-year JGB yield fell 1 basis point to 1.095%.

The 40-year JGB yield fell 1 basis point to 1.210%.

The two-year JGB yield rose 0.5 basis point to -0.090%. The five-year yield rose 0.5 basis point to -0.010%.