TOKYO: Benchmark 10-year Japanese government bond yields stabilized on Thursday following a sharp retreat in the previous session from a 10-month high.

The 10-year JGB yield was flat at 0.125%, after touching the highest since March 5 on Tuesday at 0.150%.

Japanese yields have tracked those on US Treasuries higher, with the 10-year Treasury yield hitting an almost two-year high on Monday - when Japanese markets were shut for a holiday - amid strengthening bets for earlier and faster Federal Reserve policy tightening to combat persistent inflation.

JGB yields dip as Fed's Powell softens hawkish stance

The US consumer price index recorded its biggest rise in almost 40 years overnight, although the result was in line with economist expectations.

"It's not like concerns about faster US interest rate hikes receded, but they didn't get any stronger" following the CPI data, leaving bonds to tread water, said Katsutoshi Inadome, senior bond strategist at Mitsubishi UFJ Morgan Stanley Securities.

Benchmark 10-year JGB futures rose 0.01 point to 151.06, with a trading volume of 22,189 lots.

The 20-year JGB yield was flat at 0.505%, while the 30-year yield edged up 0.5 basis point to 0.705%.

The five-year yield added 0.5 basis point to minus 0.040%.

The two-year JGB was untraded on the day, and last yielded minus 0.085%.