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JGB yields edge up amid dearth of domestic drivers before US CPI report
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JGB yields edge up amid dearth of domestic drivers before US CPI report
Oct 10, 2024 9:51 PM

TOKYO, Oct 9 (Reuters) - Japanese government bonds (JGB)

yields edged higher on Wednesday but lacked momentum amid a

dearth of catalysts a day ahead of a keenly anticipated U.S.

consumer price report.

Monetary policy at home and in the United States remain the

dominant themes for Japan's bond market and the potential for

the U.S. inflation reading on Thursday to alter bets on the pace

of the Federal Reserve's easing added an air of caution.

The 10-year JGB yield rose 1 basis point (bp)

to 0.93% as of 0552 GMT, staying at the top of its range of the

past month.

Benchmark 10-year JGB futures fell 0.11 yen, to

144.15 yen. Bond prices move inversely to yields.

The five-year yield added 1 bp to 0.55%, its

highest since Aug. 2, ahead of an auction of the securities on

Thursday.

The two-year yield was flat at 0.4%.

At the long end, the 20-year yield advanced

1.5 bps to 1.72%, while the 30-year yield gained

1 bp to 2.14%.

Japan's prime minister, on Wednesday, reiterated that

exiting deflation remains the top priority, suggesting that the

central bank has no urgency to raise rates further for now.

Mizuho Securities chief bond strategist Noriatsu Tanji said

the current wage growth of around 3% may not be enough to

sustainably achieve the Bank of Japan's 2% inflation target.

"It is a delicate question whether or not underlying

inflation will accelerate," he said.

"Considering the uncertainty over whether next year's spring

labour negotiations will be better than this year's, it seems

that there are still a number of hurdles to overcome."

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