TOKYO — Japanese government bonds steadied on Monday after a tumultuous week that saw fiscal concerns drive super long-term yields to record highs.
The benchmark 10-year JGB yield was flat at the 1.615 percent level reached on Friday, its highest since October 2008. Futures 2JGBv1 on the bonds fell 0.02 yen to 137.53.
JGBs have plunged in recent months as concerns mounted about the government’s debt levels and deficit spending. Selling pressure intensified after a poor electoral showing last month for the coalition of fiscal hawk Prime Minister Shigeru Ishiba, stirring speculation that he will step down.
“Investors remain cautious due to the lack of progress in domestic politics and fiscal policy, which is leading to sluggish trading,” said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management.
Yields on 30-year JGBs were unchanged from an all-time peak of 3.21 percent reached on Friday. The 20-year yield fell 0.5 basis point to 2.660 percent, edging lower from the highest level since November 1999 hit in the previous session.
Most cash bonds are yet to trade in Tokyo, as of Monday afternoon. The market may have been supported by a poll showing a rebound in public approval for PM Ishiba.
Support for Ishiba’s cabinet stood at 39 percent, surging by 17 percentage points from the previous month, a Yomiuri newspaper poll showed.
