TOKYO- Japanese government bond (JGB) yields rose on Monday as market players awaited auctions of 10- and 30-year bonds and comments from the Bank of Japan deputy governor this week for rate-hike clues.
The 10-year JGB yield rose 3 basis points (bps) to 1.4 percent. The two-year JGB yield rose 1.5 bps to 0.82 percent and the five-year JGB yield rose 3.5 bps to 1.035 percent.
“The yields have been on upward trend, and when there is no positive market-moving catalyst, they tend to rise,” said Miki Den, senior Japan rate strategist at SMBC Nikko Securities.
The Ministry of Finance will conduct the 10-year bond auction on Tuesday and the 30-year bond auction on Thursday.
BOJ Deputy Governor Shinichi Uchida, who orchestrated the central bank’s ultra-easy monetary policy in the past, could throw light on the central bank’s path for rate hikes when he speaks on Wednesday, strategists said.
The 20-year JGB yield rose 1.5 bps to 2.045 percent.
The 30-year JGB yield rose to 2.365 percent, its highest since October 2008, before trading flat at 2.355 percent.
