JGB 10-year yield rises to 30-year high ahead of auction
TLT•10-year JGB yield hits 30-year high
TOKYO, Sept. 1 (Reuters) - The yield on benchmark 10-year Japanese government bonds rose to a 30-year high on Tuesday, pulled higher by an overnight climb in U.S. Treasury yields and ahead of a closely watched auction of the Japanese notes later in the day.
Here are a few details:
- The 10-year yield JP10YTN=JBTC added 1.5 basis points to 2.955% in early trading, the highest since September 1996. Yields rise when bond prices fall.
- Investors are cautious amid growing expectations of interest rate hikes by both the Bank of Japan and the U.S. Federal Reserve, which would put further upward pressure on yields.
- Inflation risks are also simmering as Middle East uncertainty keeps crude oil prices elevated.
- Traders are also eyeing budget requests from Japan's ministries for next fiscal year, amid reports that the total will climb to a record high.
- The Ministry of Finance will auction about 2.6 trillion yen ($16.3 billion) of 10-year notes, with the results due at 0335 GMT.
- The 20-year JGB yield JP20YTN=JBTC rose 1.5 bps to 3.84%. Other cash bond tenors had not traded, as of 0014 GMT.
- Benchmark 10-year JGB futures 2JGBv1 declined 0.17 yen to 125.80 yen.
($1 = 159.7400 yen)
