JGB yields rise after weak auction as inflation worries simmer
TLT•Yields rise after weak 2-year auction
TOKYO, Aug. 28 - Japanese government bond (JGB) yields rose on Friday, with the 5-year note's yield marking a record high, as a weak auction dented sentiment while inflation worries also continued to simmer.
Here are a few details:
- Yields extended an early advance after the 2-year JGB auction results showed a significant decline in demand compared with the previous month's sale.
- The 5-year JGB yield JP5YTN=JBTC rose 4 bps to 2.195%, a record high. Yields rise when bond prices fall.
- The 2-year yield JP2YTN=JBTC added 1.5 bps to 1.7%, from flat before the auction results.
- The 10-year yield JP10YTN=JBTC rose 3.5 bps to 2.925%.
Longer-dated yields and policy worries keep climbing
- Most JGB yields had already been climbing after oil rose overnight amid continued uncertainty in the Middle East.
- Tokyo CPI creeped higher in August, data showed on Friday, bolstering the case for a Bank of Japan interest rate hike next month.
- Investors are also cautiously eyeing Kevin Warsh's maiden Jackson Hole speech as Federal Reserve chair later in the day.
- The 20-year JGB yield JP20YTN=JBTC rose 4 bps to 3.805%, and the 30-year yield JP30YTN=JBTC rose 5 bps to 4.11%.
