Japan bond yields rise as US inflation fuels rate hike bets
Japanese government bond yields climbed for a third straight session, tracking a global debt selloff after stronger US inflation data and hawkish Fed commentary raised expectations of further rate hikes. Investors also assessed the Bank of Japan’s...
By Anupam Nagar, ETMarkets.com |
ETMarkets.com
Rising US yields and expectations of tighter monetary policy are putting pressure on Japanese bonds, while investors watch for signals from the BOJ.
Japanese government bond (JGB) yields rose on Wednesday, tracking a global bond market selloff after hotter-than-expected US inflation data strengthened expectations of further interest rate hikes by the Federal Reserve.
The benchmark 10-year JGB yield climbed 6 basis points to 2.750%, marking its third consecutive session of gains. Bond yields move inversely to prices.
US Treasury yields jumped on Tuesday after October consumer price inflation came in higher than expected, while hawkish comments from Federal Reserve Governor Christopher Waller further boosted expectations of a potential rate hike in December. The selloff also spread to euro zone bond markets.
Read more: Global Market Today: Asian stocks rise on CoreWeave results, bonds drop
Investors are also assessing the Bank of Japan's monetary policy outlook after the central bank released a summary of opinions from its October meeting on Tuesday. According to Reuters, the summary showed policymakers debating whether to accelerate the pace of interest rate increases.
The BOJ raised its key interest rate to 1.25% in September, while markets are increasingly pricing in a 25-basis-point hike to 1.5% in December.
Japanese government bonds also came under pressure on Tuesday after a 30-year bond auction attracted weak demand. Investors are now turning their attention to a five-year JGB auction scheduled for Thursday.
Read more: US stocks: Five things to know about Anthropic
Among other maturities, the two-year JGB yield, which is particularly sensitive to BOJ policy expectations, rose 6 basis points to 1.835%. The five-year yield remained unchanged.
The 40-year JGB yield, Japan's longest maturity, edged down 0.5 basis points to 4.055%, while 20-year and 30-year yields were largely unchanged.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)
The benchmark 10-year JGB yield climbed 6 basis points to 2.750%, marking its third consecutive session of gains. Bond yields move inversely to prices.
US Treasury yields jumped on Tuesday after October consumer price inflation came in higher than expected, while hawkish comments from Federal Reserve Governor Christopher Waller further boosted expectations of a potential rate hike in December. The selloff also spread to euro zone bond markets.
Read more: Global Market Today: Asian stocks rise on CoreWeave results, bonds drop
Investors are also assessing the Bank of Japan's monetary policy outlook after the central bank released a summary of opinions from its October meeting on Tuesday. According to Reuters, the summary showed policymakers debating whether to accelerate the pace of interest rate increases.
The BOJ raised its key interest rate to 1.25% in September, while markets are increasingly pricing in a 25-basis-point hike to 1.5% in December.
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Japanese government bonds also came under pressure on Tuesday after a 30-year bond auction attracted weak demand. Investors are now turning their attention to a five-year JGB auction scheduled for Thursday.
Read more: US stocks: Five things to know about Anthropic
Among other maturities, the two-year JGB yield, which is particularly sensitive to BOJ policy expectations, rose 6 basis points to 1.835%. The five-year yield remained unchanged.
The 40-year JGB yield, Japan's longest maturity, edged down 0.5 basis points to 4.055%, while 20-year and 30-year yields were largely unchanged.
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(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)
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