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)