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JGB falls to track US Treasury declines; investors eye BOJ's tapering plans
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JGB falls to track US Treasury declines; investors eye BOJ's tapering plans
Jun 15, 2025 11:01 PM

TOKYO, June 16 (Reuters) - Japanese government bonds

(JGBs) fell on Monday, tracking declines in U.S. Treasuries on

Friday, as investors awaited market-moving cues such as the Bank

of Japan's (BOJ) decision on its bond tapering.

The five-year JGB yield and the 10-year JGB

yield rose four basis points (bps) to 1.005% and

1.44%, respectively.

Yields and prices of bonds move inversely.

The BOJ is expected to announce a slower pace of reductions

in its bond purchases from the next fiscal year at the end of a

two-day policy meeting on Tuesday.

In addition to the BOJ's decision, the market awaits a

five-year bond auction, as well as a meeting of primary dealers,

which would affect demand for JGBs, said Naoya Hasegawa, chief

bond strategist at Okasan Securities.

The BOJ is under pressure from JGB investors to slow the

pace of its tapering following a surge in yields on

super-long-dated bonds.

The market also expects the Ministry of Finance to cut the

sale of such bonds after it gauges opinions from bond dealers,

strategists said.

"We can say the JGB yields rebounded from their declines

last week, after the market saw rises in U.S. Treasury yields,"

Hasegawa said.

U.S. Treasury yields rose Friday after Israel's strike on

Iran shocked markets, pushing oil prices higher and pressuring

stocks.

The 20-year JGB yield rose 3 bps to 2.375%

and the 30-year JGB yield rose 2.5 bps to

2.905%.

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