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Japan bond yields track US peers higher
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Japan bond yields track US peers higher
Apr 7, 2024 11:46 PM

TOKYO, April 8 (Reuters) - Japan's government bond (JGB)

yields rose on Monday, tracking U.S. Treasury yields higher,

with the Bank of Japan's (BOJ) regular bond-buying operation

having a smaller impact on the market.

The two-year government bond yield rose 1.5 basis

points (bps) to 0.225%, its highest since March 2011. The

10-year JGB yield rose 1.5 bps to 0.78%, its

highest since March 18.

U.S. Treasury yields rose at the end of last week after data

showed the world's largest economy created more jobs than

expected last month, suggesting that the Federal Reserve would

be in no rush to cut interest rates in the near term.

The two-year U.S. Treasury yield rose to 4.782%

in Asian trade, its highest since Nov. 28.

The BOJ on Monday maintained the amounts it offered to buy

for bonds maturing between one-year and more than 25 years.

The central bank last week defied market expectation and

kept the bond buying amount at its first operation for the year

intact.

The market had expected a cut as BOJ said last month it

would scale back the maximum limit of its purchases of JGBs in

the April-June quarter.

"The BOJ will probably keep the amounts intact for a while,

as they kept the offer amounts for bonds even for 3-5 year

maturities intact today," Ataru Okumura, senior rates strategist

at SMBC Nikko Securities said.

The Ministry of Finance has cut the annual issuance of JGBs

with 20-year and shorter maturities in this fiscal year starting

April 1, with the two-year bond issuance being cut by 3.6

trillion yen ($23.72 billion) in the biggest margin in terms of

amounts.

On Monday, the five-year yield rose 0.5 bp to

0.385%.

The 20-year JGB yield rose 1 bp to 1.540%

while the 30-year JGB yield gained 2 bps to

1.825%.

The 40-year JGB yield climbed 2.5 bps to

2.135%.

($1 = 151.7900 yen)

(Reporting by Junko Fujita; Editing by Mrigank Dhaniwala)

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