TOKYO: Japanese government bond (JGB) yields inched up on Tuesday, tracking US Treasury yields overnight, as the focus turned to a week of central bank meetings that include decisions from the Federal Reserve and the Bank of Japan (BOJ).

US 10-year yields overnight held just below the 16-year highs reached last month, ahead of the Federal Reserve’s meeting on Wednesday.

The Fed is expected to leave rates unchanged but could signal that it is open to further increases.

The US yield last sat lower at 4.3085%.

As the JGB market reopened after a local holiday on Monday, the 10-year JGB yield went as high as 0.72%, the near-decade peak hit last week, before sinking lower to 0.71%.

Japan’s central bank has its monetary policy meeting on Friday, creating an easy environment for JGB yields to rise.

Although an exit from the BOJ’s ultra-easy monetary policy is unlikely at this meeting, investors will be looking closely for changes to the central bank’s forward guidance, said Resona Holdings Strategist Takeshi Ishida.

“If (the BOJ’s forward guidance) were changed, even if there is no policy adjustment this time, I think expectations for a possible adjustment next time would increase.”

JGB yields surged last week after a local report signalled a possible end to the BOJ’s negative rate policy.

The 20-year JGB yield was flat at 1.425%.

The 30-year JGB yield rose 1.5 basis points (bps) to 1.685%.

On the short end, the two-year JGB yield sat 0.5 bps higher at 0.03%, while the five-year yield ticked up 1 bps to 0.28%.