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JGB yields rise with US peers; BOJ rate hike timing in focus
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JGB yields rise with US peers; BOJ rate hike timing in focus
Dec 9, 2024 10:04 PM

TOKYO, Dec 10 (Reuters) - Japanese government bond (JGB)

yields rose on Tuesday, tracking U.S. Treasury yields higher as

investors awaited U.S. inflation data due this week, while

speculation about when the Bank of Japan (BOJ) would raise

interest rates continued.

The 10-year JGB yield was last 2 basis points

(bps) higher at 1.055%, while 10-year JGB futures fell

0.15 points to 143.11 yen.

U.S. Treasury yields climbed on Monday ahead of the closely

watched Consumer Price Index (CPI) data to see whether

stubbornly high price pressures could derail expectations for a

Federal Reserve rate cut next week.

Risk appetite was boosted during U.S. market hours on news

that China will adopt an "appropriately loose" monetary policy

next year, alongside a more proactive fiscal policy to spur

economic growth.

In Japan, investors continued to lean toward a January rate

hike by the BOJ since media reports last week suggested that the

central bank might stand pat this month.

HSBC Chief Asia Economist Frederic Neumann and Economist Jun

Takazawa still expect a rate hike in Japan next week.

"We believe the majority of policy board members have enough

conviction that broad-based wage growth will continue next year

and will choose to move in December, ahead of what could be an

eventful January on the U.S. front as Donald Trump takes

office," they wrote in a research note on Monday.

The BOJ announced on Monday that Deputy Governor Ryozo

Himino will speak on Jan. 14, which some analysts pointed to as

unusual timing for a board member to speak.

The two-year JGB yield, which corresponds more

closely with monetary policy, climbed 1 bp to 0.58%.

The five-year yield was up 1 bp at 0.72%, down

from a session high of 0.74% after an auction for the bond saw

strong demand.

The 20-year JGB yield rose 1.5 bps to 1.855%,

while the 30-year JGB yield ticked up 0.5 bp to

2.255%.

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