TOKYO: Japanese government bond (JGB) yields rose moderately on Wednesday, tracking an upward trend of US Treasury yields amid prolonged talks over the US debt ceiling. The 10-year JGB yield rose 1 basis point (bps) to 0.405% and the 20-year JGB yield rose 1.5 bps to 1.005%.
“US yields are on an upward trend, which affected the movement of JGB yields,” said Takeshi Ishida, strategist at Resona Holdings.
Prospects of the Bank of Japan’s policy shift have been a market-moving catalyst in recent sessions, but market players started paying more attention to overseas yields, as the BOJ’s near-term policy shift is seen more unlikely, strategists said.
“The speculation on the policy tweak has not been completely removed, but that is no longer a market-moving cue,” said Makoto Suzuki, senior bond strategist at Okasan Securities.
JGB yields stabilise near one-month lows in BOJ aftermath
An auction for 10-year bonds to be held next week might have weighed on investor sentiment as well, Suzuki said.
The 30-year JGB yield rose 2 bps to 1.250% and the 40-year JGB yield rose 1.5 bps to 1.430%.
The five-year yield rose 0.5 bps to 0.100%. The two-year JGB yield was flat at -0.065%.
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