TOKYO: The benchmark 10-year Japanese government bond yield rose on Monday on increased optimism for an end to the Russia-Ukraine conflict, but caution ahead of policy meetings at the Bank of Japan and US Federal Reserve this week kept trading subdued.

The 10-year JGB yield rose 1 basis point to 0.190% as of 0558 GMT, while benchmark 10-year JGB futures fell 0.17 point to 150.24, with a trading volume of 13,496 lots.

However, the two- and five-year notes hadn’t changed hands, and last yielded minus 0.035% and 0.015%, respectively.

The market got some respite after US Deputy Secretary of State Wendy Sherman said on Sunday that Russia was showing signs it might be willing to have substantive negotiations over Ukraine.

However, traders are also watching what the Fed will do on Thursday, with the BOJ setting policy the following day.

“It’s still not certain if a ceasefire can be agreed, and we need to wait to see if the current risk-on mood establishes itself as a trend,” said Hideki Shibata, senior rates and currencies strategist at Tokai Tokyo Research Institute.

“It’s possible we’ll see this high market volatility continue.”

Superlong JGB yields, though, retreated, flattening the yield curve in sympathy with US Treasuries.

The 30-year yield fell 1.5 basis points to 0.860%, and the 40-year yield fell 1 basis point to 0.900%.

The 20-year JGB yield was flat at 0.660%.