off-the-wire

JGB yields rise as investors sell bonds after recent price rally

Kitco Media
By Reuters
Published:
Updated:
Reuters
TOKYO, May 15 (Reuters) - Japanese government bond (JGB) yields rose on Monday, with those on the benchmark 10-year securities hitting their highest in more than a week as investors sold bonds after a recent rally. The 10-year JGB yield rose 2.5 basis points (bps) to 0.405%, its highest level since May 11. The yield had touched a more than one-month low in the previous session.


"This is a rebound from sharp declines in yields on JGBs," said Takeshi Ishida, a strategist at Resona Holdings.


"Also, U.S. Treasuries rose at the end of last week after a release of data that could suggest a rake hike in June." Investors bought bonds last week after prospects for the Bank of Japan's (BOJ) policy change weakened following Governor Kazuo Ueda's comments that the bank will end its yield curve control policy once prospects heighten for inflation to sustainably hit its 2% target.


U.S. Treasury yields rose on Friday after data showed that consumers' long-term inflation expectations increased to their highest reading since 2011 in May, while consumer sentiment slumped to a six-month low. The 20-year JGB yield rose 2 basis points (bps) to 1.025%, after falling to a more than two-month low in the previous session. The 40-year JGB yield rose 2 bps to 1.445%.


The 30-year JGB yield was flat at 1.245%. The five-year yield rose 1 basis point to
0.110% and the two-year JGB yield was flat at -0.060%. Benchmark 10-year JGB futures fell 0.22 yen to 148.74, with a trading volume of 8,423 lots. (Reporting by Tokyo markets team; editing by Uttaresh Venkateshwaran)

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