By Kevin Buckland
TOKYO, March 22 (Reuters) - Japanese government bond
yields rose on Wednesday tracking a global rebound in yields
from multi-month lows, as easing concerns about a banking
meltdown weighed on appetite for safe-haven assets.
Japan's five-year yield bounced from a
four-month trough hit on Monday, while 10-year JGB futures were on course for their steepest decline since
mid-January. Japanese markets were closed on Tuesday for a
public holiday.
Trading was thin, however, with a crucial U.S. Federal
Reserve interest rate decision due later in the day. Many
benchmark cash bonds had yet to change hands as of 0515 GMT,
including the 10-year note.
Money markets are again positioned for a quarter-point rate
hike by the Fed, after trimming those expectations to closer to
a coin toss earlier in the week. "For the time being, worries about the tail risk for a
full-blown financial crisis have receded," Noriatsu Tanji, chief
bond strategist at Mizuho Securities, wrote in a note.
Benchmark 10-year JGB futures were down 0.72 point at 148.27
as of 0530 GMT, set for their steepest decline since Jan. 13.
The five-year JGB yield added 3 basis points (bps) to 0.09%,
while the 20-year yield rose 7.5 bps to 1.06% and
the 40-year yield rose 7 bps to 1.53%.
Like the benchmark 10-year JGB , the two-year
note and 30-year bond had yet to
trade. They last yielded 0.23%, -0.08% and 1.23%, respectively.
(Reporting by Kevin Buckland; Editing by Rashmi Aich)
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