TOKYO: Japan’s 10-year government bond (JGB) yield inched down on Monday after hitting a more than 13-year high in the previous session. The 10-year bond yield was last at 1.09%, down one basis point (bp), after rising to as high as 1.105% earlier in the session.
The yield hit 1.11% on Friday, its highest level since July 2011.
“The 10-year yield had been supported by demand for buying on dip, but there was selling pressure amid thin trade, which lifted the yield to the new level at the end of last week,” said Noriatsu Tanji, chief bond strategist at Mizuho Securities.
Japan’s 10-year JGB yield rose 47 bps in 2024 as the Bank of Japan (BOJ) ended its negative interest rate policy in March and raised its policy rate to 0.25% in July.
The yield fell after the BOJ kept interest rates unchanged earlier this month and its governor offered few clues on how soon it could push up borrowing costs.
The US 10-year Treasury yields hovered near eight-month highs, ending the year around 75 basis points above where they started it even though the Federal Reserve delivered 100 basis points of cuts to cash rates.
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JGB yields on other maturities also slipped on Monday, the last trading day for the year, with the five-year JGB yield slipping 0.5 bp to 0.745% and the 20-year JGB yield down 0.5 bp to 1.890%.
The 30-year JGB yield fell 0.5 bp to 2.285% and the 40-year JGB yield was down 0.5 bp to 2.62%.
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