TOKYO, Feb 12 (Reuters) - Japanese government bond (JGB)
yields hit new multi-year highs on Wednesday amid uncertainties
about the Bank of Japan's rate hike pace, while higher U.S.
Treasury yields also weighed on sentiment.
The 10-year JGB yield rose 3 basis points
(bps) to 1.34%, its highest level since February 2011.
The five-year yield rose 1.5 bps to 1%, its
highest since October 2008.
"There are no market cues to buy JGBs," said Miki Den,
senior Japan rate strategist at SMBC Nikko Securities.
JGB yields are rising as the market struggles to gauge the
pace of the BOJ's interest rate hike and how far the policy rate
will be raised, with Japan's core consumer prices rising fast.
"Until last week the JGB yields rose on expectations for a
faster pace of the BOJ's rate hike, but today, we have market
cues from outside Japan," said Katsutoshi Inadome, senior
strategist at Sumitomo Mitsui Trust Asset Management.
U.S. Treasury prices fell on Tuesday, pushing yields higher,
pressured by comments from Federal Reserve Chair Jerome Powell
saying the central bank is not in a rush to cut interest rates
as well as persistent worries about tariffs after steep duties
imposed on all steel and aluminium imports.
The two-year JGB yield rose to 0.8%, its
highest since October 2008 and was last at 0.79%, up 0.5 bp from
the previous session.
The 20-year JGB yield rose 2 bps to 1.995%
and the 30-year JGB yield rose 1.5 bps to 2.305%.
The 40-year JGB yield rose 1 bp to 2.645%.