TOKYO: Japanese government bond (JGB) yields rose on Tuesday, tracking US Treasury peers, as an auction for the bonds with the same maturity drew moderately firm demand.

The 10-year JGB yield rose 0.5 basis point to 0.245%, just below the Bank of Japan’s upper limit of its policy band.

The 20-year JGB yield rose 3 basis points to 1.080% and the 30-year JGB yield rose 0.5 basis point to 1.420%.

Treasury yields edged higher overnight, as a relatively strong US economy and labor market suggested the Federal Reserve will stay the course this week and aggressively raise interest rates again to tame inflation.

Yields on Japan’s super-long notes fall after BOJ ramps up bond buying

Japan’s auction for 10-year bonds received bids worth 5.24 times the amount available, lower than a bid-cover ratio of 5.55 at the previous auction.

“The outcome was relatively firm but it could have been a little weak,” said a market participant at a domestic brokerage.

“The futures rose but that was not driven by the outcome of the auction.” Benchmark 10-year JGB futures rose 0.05 point to 148.82, with a trading volume of 10,162 lots. The two-year JGB yield was flat at -0.045%.

The five-year yield fell 0.5 basis point to 0.070%.

The 40-year JGBs did not trade and the yield remained at 1.620%.