off-the-wire

JGB yields fall as rise in U.S. Treasury yields pauses

Kitco Media
By Reuters
Published:
Updated:
Reuters
TOKYO, March 1 (Reuters) - Japanese government bond (JGB) yields fell on Wednesday, following a pause in the rise of Treasury yields, while the domestic 10-year bond yield was pinned at the top end of the Bank of Japan's policy band. U.S. Treasury yields traded little changed overnight as the market awaited data on consumer prices and the labour market in the coming weeks to better gauge the pace of inflation and how long the Federal Reserve will keep interest rates higher. Japan's five-year yield fell to as low as 0.185%, its lowest since Feb. 16, before falling 2 basis points bps) to 0.190%.


The 20-year JGB yield fell 0.5 bp to 1.180%. Incoming BOJ Governor Kazuo Ueda as well as two candidates for deputy governor positions finished their testimony at both chambers in the nation's parliament, suggesting no immediate change in the central bank's policy. "A round of the event has finished, but the focus will remain on the BOJ policy," said Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management. "Market consensus is that the BOJ will have to tweak the current policy sooner or later."


The 10-year JGB yield was flat at 0.500%, while the 10-year bond maturing in 2031 was last traded at 0.548%.


The 40-year JGB yield fell 2.5 bps to 1.495%. The 30-year JGB yield was flat at 1.360%. The two-year JGB yield fell 1.5 bps to -0.040%. Benchmark 10-year JGB futures rose 0.18 yen to 146.83, with a trading volume of 12,597 lots.
(Reporting by Tokyo markets team)

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