JGB yields rise as BOJ official makes case for faster rate hikes
TLT•Oil prices and longer-dated yields
- Iran said on Wednesday it had attacked 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers, in the biggest wave of attacks on shipping by both sides since the start of the six-month-old war.
- Brent crude rose above $100 a barrel as a result, for the first time since late July.
- Japan's 20-year yield JP20YTN=JBTC climbed 5 bps to 3.75%, and the 30-year yield JP30YTN=JBTC advanced 5.5 bps to 4.01%.
Benchmark and shorter-dated yields move higher
- The benchmark 10-year JGB yield JP10YTN=JBTC rose 5 basis points (bps) to 2.93%.
- The 2-year yield JP2YTN=JBTC, which is particularly sensitive to monetary policy expectations, added 1.5 bps to 1.845%.
- The 5-year yield JP5YTN=JBTC added 3 bps to 2.25%.
JGB yields rise on oil gains and BOJ hawkish remarks
TOKYO, Sept. 10 (Reuters) - Japanese government bond (JGB) yields rose on Thursday as escalating Middle East tensions pushed oil prices higher, with gains gathering pace after a Bank of Japan official struck a hawkish tone on further policy tightening.
Here are a few details:
Policy expectations and comments from the Bank of Japan
- Yields moved a step higher after BOJ board member Kazuyuki Masu said in a speech that the bank may be forced to raise interest rates rapidly if inflation accelerates, as Japan's financial conditions remain accommodative.
