The 20-year JGB yield rose 0.5 bp to 1.315%. "The view on the U.S monetary policy is becoming less optimistic," said Makoto Suzuki, a senior strategist at Okasan Securities. Benchmark 10-year U.S. Treasury yields hit four-week highs overnight, after a blowout employment number raised expectations that the Federal Reserve's interest rate hikes will not end with a hard economic landing, and that the U.S. central bank may have more than one more rate increase left. "In Japan, more investors agree that, depending on who becomes the governor, it is inevitable for the BOJ to tweak its monetary policy which has caused obvious market distortions."
The Japanese government is considering presenting to parliament its nominees for next BOJ governor and two deputy governors sometime next week. The 30-year JGB yield rose 2 bps to 1.545% after an auction for the bonds with the same maturity witnessed a firm outcome. The auction received bids worth 3.32 times the amount sold, higher than a ratio of 3.1 times at the previous auction. The 40-year JGB yield rose 2.5 bps to 1.785%. The two-year JGB yield rose 0.5 bp to -0.025%. The five-year yield rose 1 bp to 0.175%. Benchmark 10-year JGB futures fell 10 yen to 146.84, with a trading volume of 10,693 lots. (Reporting by Tokyo markets team; Editing by Rashmi Aich)
