By Kevin Buckland
TOKYO, March 27 (Reuters) - Superlong Japanese
government bond yields rose on Monday as traders adjusted
positions ahead of new supply the following day, although
trading was overall quiet in the final week of the country's
fiscal year.
Rises in U.S. Treasury yields in Tokyo trading also added
pressure on yen bond yields as investors digested news that
First Citizens would buy large parts of failed Silicon Valley
Bank's deposits and loans.
The 40-year JGB yield rose 4 basis points
(bps) to 1.615% as of 0650 GMT, and earlier reached 1.62% for
the first time since March 10, with the finance ministry due to
auction 40-year securities on Tuesday.
The 30-year yield and 20-year yield each added 2 bps to 1.34% and 1.07% respectively.
"From this week, I expect the year-end buying needs of JGB
investors will be finishing up, and there's potential for a
rebound in yields after the declines since mid-March," Noriatsu
Tanji, chief bond strategist at Mizuho Securities, wrote in a
client note.
Superlong JGB yields had plunged to multi-month lows on
March 14, pressured both by year-end demand and declines in
overseas yields amid a global rush for the safest assets.
Benchmark 10-year JGB futures slipped 0.06 point to
148.64 on Monday. The 10-year cash bond had yet
to trade, and last yielded 0.28%.
The two-year note also had not traded, last
yielding -0.07%.
The five-year JGB yield rose 0.5 bp to 0.065%.
(Reporting by Kevin Buckland; Editing by Emelia
Sithole-Matarise)
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