Benchmark Japanese bond yields rise towards 29-year high ahead of BOJ

TOKYO: Yields on benchmark Japanese government bonds edged towards a 29-year high on Tuesday as investors awaited a policy decision from the central bank and signals for future rate hikes.

The benchmark 10-year JGB yield rose 0.5 basis point (bp) to 2.475% in early trading, closing in on the 2.49% level hit earlier this month that was the highest since June 1997.

Yields move inversely to bond prices.

At the conclusion of its two-day policy meeting on Tuesday, the Bank of Japan is widely expected to keep its key rate at 0.75%.

That puts the focus on the central bank’s quarterly outlook report and comments from Governor Kazuo Ueda for signs of how the Middle East conflict may impact the rate-hike path.