TOKYO: Japanese government bond yields rose on Monday, tracking US Treasury peers, while a rally in domestic equities hurt demand for save-haven debt.

The 10-year JGB yield rose 1 basis point to 0.230% and the 20-year JGB yield climbed 2.5 basis points to 0.920%.

US Treasury yields rose from two-week lows on Friday, as investors weighed the likelihood that the Federal Reserve will spark an economic downturn, as it aggressively hikes interest rates in a bid to stem soaring inflation.

Japan’s benchmark Nikkei share average jumped more than 1% after a surge in Wall Street at the end of last week. Focus is now on the US Personal Consumption Expenditures (PCE) price index data on Thursday for further confirmation that price pressures remain heated.

JGB yields fall amid caution ahead of US jobs data

“If the index rises, that could spur concerns about inflation,” said an economist based in Japan.

The 30-year JGBs and the 40-year JGBs did not trade and their yields remained at 1.235% and 1.325%, respectively.

Yields on shorter-ended notes rose, with the two-year JGB yield climbing 1.5 basis points to -0.070% and the five-year yield rising 1 basis point to 0.040%.

Benchmark 10-year JGB futures fell 0.25 point to 148.52, with a trading volume of 6,734 lots.