TOKYO – Japan’s 10-year government bond yield hit an over one-month high on Monday, tracking higher US yields, and investors remained cautions in buying debts ahead of the Bank of Japan’s (BOJ) policy meeting.
The 10-year JGB yield rose 2 basis points (bps) to 0.475 percent, its highest since March 10. The 20-year JGB yield rose 3 bps to 1.085 percent.
US Treasury yields rose in the previous session, as a mixed batch of data suggested that the world’s largest economy is not slowing quickly enough to deter the Federal Reserve from raising interest rates yet again at its next policy meeting.
“There are not many buyers as market participants are cautions amid concerns that the Federal Reserve will continue raising rates, while investors awaited outcome of the BOJ meeting next week,” said Makoto Suzuki, a senior strategist at Okasan Securities.
Some strategists speculate that new BOJ Governor Kazuo Ueda may tweak the central bank’s ultra-loose policy as early as April, given recent gains in wages, while upward pressure on Japanese yields has weakened.
But Ueda has consistently stressed the need to maintain the stimulus until a more durable rise in wages and inflation can be foreseen.
The 30-year JGB yield rose 3 bps to 1.330 percent.
The two-year JGB yield was flat at -0.045 percent and the five-year yield was also flat at 0.150 percent.
The 40-year JGB yield was flat at 1.485 percent.
Benchmark 10-year JGB futures fell 0.33 yen to 147.35, with a trading volume of 8,841 lots. — Reuters
