Japan's 10-year JGB yield rises on government spending worries
TLT•Longer-end yields climb while shorter maturities ease
The 20-year JGB yield JP20YTN=JBTC was up 2 bps at 3.67%. The 30-year yield JP30YTN=JBTC rose 1.5 bps to 3.980%.
Shorter-end yields fell, with the two-year yield JP2YTN=JBTC down 1 bp to 1.49%. The five-year yield JP5YTN=JBTC fell 1 bp to 2.005%, retreating from a record high of 2.045% marked on Friday.
Market awaits BOJ meeting and Governor Ueda's message
The market is awaiting a message from Bank of Japan Governor Kazuo Ueda at the end of its policy meeting on Friday, where the central bank is expected to keep the policy rate steady.
"The market is expecting interest rate hikes at a faster pace, but the BOJ's message will be limited to show its caution for upward pressure on prices," said Kento Minami, senior economist at Daiwa Securities.
Minami expects the BOJ to raise interest rates again in October to stem the yen's weakness as central banks in the U.S. and Europe could increase rates in September.
The BOJ raised interest rates to a 31-year high of 1% in June and signalled readiness to tighten further.
"It would be too late for the BOJ to raise rates in December," Minami said.
10-year JGB yield rises on spending worries
TOKYO, July 28 (Reuters) - Japan's 10-year government bond yield rose on Tuesday, on worries about government spending as sources for potential food tax cuts that Prime Minister Sanae Takaichi pledged to carry out remain unclear.
The benchmark 10-year JGB yield JP10YTN=JBTC rose to as high as 2.78%, and was last up 1 basis point at 2.78%. Yields move inversely to bond prices.
Ruling and opposition parties have failed to reach an agreement on details of the programme at the parliament session concluded on Monday, but Takaichi said she would swiftly submit a bill for the cuts.
