JGB yields follow Treasury yields higher

09 Aug, 2021

TOKYO: Japanese government bond yields ticked higher on Friday, in line with a rise in Treasury yields ahead of a key US jobs report later in the day. The 10-year JGB yield rose 0.5 basis point to 0.010%, after touching zero on Wednesday for the first time this year. The 20-year yield rose 1 basis point to 0.390%.

The 10-year Treasury yield rose as high as 1.2380% in Asian trading, from an almost six-month low of 1.1270% hit on Wednesday.

"Along with the rise in US yields, it's difficult for the 10-year JGB yield to break below zero," said Ataru Okumura, a strategist at SMBC Nikko Securities.

"Amid the continuous rise in yields, the curve is bear steepening," he said, referring to a quicker rise in yields for longer-term bonds than shorter-dated paper.

Benchmark 10-year JGB futures fell 0.08 point to 152.3, with a trading volume of 11,514 lots.

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