TOKYO: Japanese government bond benchmark 10-year yields edged higher on Wednesday amid caution that US Federal Reserve Chair Jerome Powell would strike a hawkish tone at the central bank’s Jackson Hole symposium, beginning Thursday.
A rise in US Treasury yields overnight to multi-week highs added some selling pressure. Meanwhile, Bank of Japan purchase operations for medium- to long-term JGBs saw limited demand.
“The result was on the weak side, though not to the extent that it impacted the broader market,” said a market participant at a domestic securities firm.
“With rising overseas yields as the backdrop, the impulse is to sell.”
Japan’s 10-year yield hits one-month high after US yield surge
The 10-year JGB yield rose 0.5 basis point to 0.220%, and the five-year yield added 1 basis point to 0.015%. Benchmark 10-year JGB futures fell 0.08 point to 149.7.
However, the two-year JGB yield eased 0.5 basis point to -0.095%.
In the super-long zone, 20-year yields were flat at 0.830%, and 30-year yields were unchanged at 1.150%.
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