Japan's 10-year bond yields hit 9-month high on Fed's hawkish signal

  • The 10-year JGB yield rose 1.5 basis points to 0.110%
06 Jan, 2022

TOKYO: Japan's benchmark 10-year government bond yields hit a nine-month high on Thursday, tracking elevated US yields, after minutes from the US Federal Reserve meeting signalled it may raise interest rates sooner than expected.

The 10-year JGB yield rose 1.5 basis points to 0.110%.

US Treasury yields also edged higher during the Asian trading hours, with the benchmark 10-year yields rising to the highest level since April 2021.

A relatively weak outcome for the Bank of Japan's bond-buying operations also dented investor sentiment.

Yields on longer-ended notes also rose, with the 20-year JGB yield rising one basis point to 0.495%, and the 30-year JGB yield climbing one basis point to 0.705%.

The 40-year JGB yield rose one basis point to 0.760%.

The two-year JGBs were not traded and the yield remained at minus 0.090%. The five-year yield rose one basis point to minus 0.060%.

Benchmark 10-year JGB futures fell 0.22 point to 151.2, with a trading volume of 22,930 lots.

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