TOKYO: Japan’s 10-year bond yields rose to a more than one-month high on Thursday, tracking their US peers which hit an eight-week peak, and shrugging off solid demand seen at a local auction.
The 10-year JGB yield rose 1 basis point to 0.230%, its highest since July 21.
The 20-year JGB yield rose 1.5 basis points to 0.845% and the 30-year JGB yield rose 1 basis point to 1.155%.
The liquidity auction received bids worth 2.4 times the amount available, higher than the bid-cover ratio of 1.95 seen at the previous auction.
“The auction witnessed solid outcome even as there was caution ahead of the big event,” said a market participant at the domestic brokerage, referring to the US Federal Reserve’s annual gathering in Jackson Hole, Wyoming.
JGB 10-year yields edge higher as investors brace for Jackson Hole
US Treasury yields reached multi-week highs overnight, ahead of what could be a pivotal central bank gathering in Wyoming that could see the Fed reinforce its tightening stance meant to stamp out inflation.
US benchmark 10-year yields hit an eight-week peak, while the two-year yield, which tends to track interest rate expectations, rose to 10-week highs.
Yields on other maturities touched peaks of anywhere between five to eight weeks.
The 40-year JGB yield rose 3 basis points to 1.300%.
The two-year JGB yield was flat at -0.090%.
The five-year yield rose 0.5 basis point to 0.020%.
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