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)