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JGB yields hit multi-year highs, tracking US Treasury yields higher
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JGB yields hit multi-year highs, tracking US Treasury yields higher
Jan 5, 2025 10:26 PM

TOKYO, Jan 6 (Reuters) - Japanese government bond yields

rose to multi-year highs on Monday, the first trading day for

2025, tracking U.S. Treasury yields higher, with an auction in

the next session weighing on sentiment.

The 10-year JGB yield rose 3.5 basis points

to 1.125%, its highest level since July 2011.

"The yield rose to track U.S. Treasury yields higher during

Japan trading hours," said Takahiro Otsuka, senior fixed income

strategist at Mitsubishi UFJ Morgan Stanley Securities.

Otsuka said market players were cautious ahead of the

auction of the 10-year JGBs on Tuesday, though it may draw firm

demand with the yield hovering at a more than 13-year high.

The finance ministry will auction 10-year bonds on Tuesday.

The five-year yield rose 3.5 bps to 0.77%, its

highest since June, following an announcement for an increase in

sale of those bonds in the new fiscal year.

Japan's Ministry of Finance said last month it will raise

the sale of five-year bonds by 1.2 trillion yen ($7.61

billion)to 28.8 trillion yen in a move to shorten the duration

of bonds in the market.

The 20-year JGB yield rose 2.5 bps to 1.91%

and the 30-year JGB yield also rose 2.5 bps to

2.305%.

The 40-year JGB yield was higher by 3.5 bps

to 2.655%.

($1 = 157.7500 yen)

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