TOKYO: Japan’s 10-year government bond yield rose on Friday, as investors remained cautious about the outcome of the Bank of Japan’s (BOJ) policy meeting next week.
The 10-year JGB yield rose 3 basis points (bps) to 0.7%.
“There is a caution ahead of the BOJ meeting. Market players are awaiting for any signs for the future policy change,” said Keisuke Tsuruta, senior fixed income strategist at Mitsubishi UFJ Morgan Stanley Securities.
The BOJ is scheduled to announce the policy decision on Tuesday after its two-day meeting.
Speculations that the central bank would announce the end of its negative rate policy has faded but many see BOJ will begin to unwind its ultra-loose monetary settings as early as January, More than a fifth of economists surveyed in a Reuters poll said the BOJ would begin to unwind its ultra-loose monetary setting as early as January.
Overnight US Treasury yields sagged to multi-month lows as bond investors braced for looming rate cuts after the Federal Reserve shifted to a dovish stance amid central bank projections for lower interest rates next year.
Japan 20-year JGB auction average yield at 1.414%, yield at lowest price 1.467%
The two-year JGB yield rose 2 bps to 0.075% and the five-year yield rose 2.5 bps to 0.300%.
The 20-year JGB yield rose 0.5 bp to 1.410%.
The 30-year JGB yield was flat at 1.615%.
The 40-year JGB yield was also flat at 1.845%.
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