TOKYO: Japanese government bond (JGB) yields rose on Tuesday, tracking US Treasury peers, as an auction for the bonds with the same maturity drew moderately firm demand.
The 10-year JGB yield rose 0.5 basis point to 0.245%, just below the Bank of Japan’s upper limit of its policy band.
The 20-year JGB yield rose 3 basis points to 1.080% and the 30-year JGB yield rose 0.5 basis point to 1.420%.
Treasury yields edged higher overnight, as a relatively strong US economy and labor market suggested the Federal Reserve will stay the course this week and aggressively raise interest rates again to tame inflation.
Yields on Japan’s super-long notes fall after BOJ ramps up bond buying
Japan’s auction for 10-year bonds received bids worth 5.24 times the amount available, lower than a bid-cover ratio of 5.55 at the previous auction.
“The outcome was relatively firm but it could have been a little weak,” said a market participant at a domestic brokerage.
“The futures rose but that was not driven by the outcome of the auction.” Benchmark 10-year JGB futures rose 0.05 point to 148.82, with a trading volume of 10,162 lots. The two-year JGB yield was flat at -0.045%.
The five-year yield fell 0.5 basis point to 0.070%.
The 40-year JGBs did not trade and the yield remained at 1.620%.
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