TOKYO, March 3 (Reuters) - Japan's 10-year government
bond yield crossed the Bank of Japan's policy ceiling for the
first time in a week amid upward pressure from U.S. Treasury
yields.
The 10-year government bond yield rose 0.5
basis point to 0.505%, rising above the ceiling for the first
time since Feb. 22. The yield had been pinned at the top end of
the band.
"U.S. Treasury yields are still under upper pressure and
that might have pushed Japan's 10-year yield higher," said
Hiroshi Namioka, chief strategist and fund manager at T&D Asset
Management.
Overnight U.S. Treasury yields continued to climb after
strong labor data reinforced concerns that the U.S. Federal
Reserve will need to raise interest rates further to cool the
economy.
By 0130 GMT, the five-year government bond yield was flat at 0.195%, while bonds on other tenors
have not been traded.
Earlier in the session, the government data showed core
consumer inflation in Japan's capital Tokyo slowed in February
as the effect of government energy subsidies kicked in, though
an index stripping away the effect of fuel hit a fresh
three-decade high in a sign of broadening inflationary pressure.
(Reporting by Junko Fujita)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.