TOKYO: Japanese government bond yields rose on Tuesday, as consumer inflation in Tokyo exceeded the Bank of Japan’s 2% target for a seventh straight month.

The 20-year JGB yield jumped 5 basis points to 1.340% and the 30-year JGB yield rose 4.5 basis points to 1.645%.

Core consumer prices in Tokyo, a leading indicator of nationwide trends, rose a faster-than-expected 4.0% in December from a year earlier.

Yields on super-long bonds also rose ahead of a 30-year note auction on Wednesday.

The 10-year JGB yield was pinned at 0.500%, the upper end of the Bank of Japan’s policy band between minus 0.5% and 0.5%.

Yields on shorter-dated notes also rose, with the two-year JGB yield rising 1.5 basis points to 0.025% and the five-year yield climbing 3 basis points to 0.225%.

Japan bond yields up as govt, BOJ talk of wage hikes

Benchmark 10-year JGB futures fell 18 yen to 145.71, with a trading volume of 16,058 lots.

The finance ministry was not able to conduct an auction for three-month Treasury Discount Bills during the session due to system glitches at the Bank of Japan.