JGB yields rise after weak auction as inflation worries simmer
- The 5-year JGB yield rose 4 bps to 2.195%, a record high
TOKYO: Japanese government bond (JGB) yields rose on Friday, with the 5-year note’s yield marking a record high, as a weak auction dented sentiment while inflation worries also continued to simmer.
Here are a few details:
Yields extended an early advance after the 2-year JGB auction results showed a significant decline in demand compared with the previous month’s sale.
The 5-year JGB yield rose 4 bps to 2.195%, a record high.
Yields rise when bond prices fall.
The 2-year yield added 1.5 bps to 1.7%, from flat before the auction results.
The 10-year yield rose 3.5 bps to 2.925%.
Most JGB yields had already been climbing after oil rose overnight amid continued uncertainty in the Middle East.
Tokyo CPI creeped higher in August, data showed on Friday, bolstering the case for a Bank of Japan interest rate hike next month.
Investors are also cautiously eyeing Kevin Warsh’s maiden Jackson Hole speech as Federal Reserve chair later in the day.
The 20-year JGB yield rose 4 bps to 3.805%, and the 30-year yield rose 5 bps to 4.11%.‑Reuters
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