Japan bond yields hit multi-week highs on US Treasury moves
TLT•Japan’s 10-year government bond yield rose 7 basis points to 2.860%, its highest since October 22, tracking gains in US Treasury yields. The 5-year yield rose 5.5 basis points to 2.25%.
1. Yields climb
Japanese government bond yields rose on Friday as traders assessed US Treasury moves and the outlook for the US-Iran war and Federal Reserve rate decisions. The 10-year yield reached 2.860%, while the 5-year yield briefly touched 2.265%, its highest since October 29.
2. Rate expectations
US Treasury yields rose overnight after President Donald Trump said the United States did not need a deal with Iran, and traders weighed the possibility of a larger-than-usual Fed rate hike next month. The yen briefly touched 160 per dollar. Sony Financial Group chief economist Hiroshi Watanabe said expectations for a rate hike were likely to strengthen, making bonds more prone to selling.
