TOKYO, July 30 (Reuters) - Japanese government bond (JGB)
yields jumped on Thursday, tracking yields on U.S. long bonds,
which rose on worries that the Federal Reserve may fall behind
the curve in coping with inflation.
Here are a few details:
* The 10-year JGB yield rose 5.5 basis points
(bps) to 2.800%. The five-year yield rose 4.5 bps
to 2.025%. Yields move inversely to bond prices.
* Yields on the 30-yearU.S. Treasuries climbed to 19-year
highs in Asia on Thursday as doubts over the Fed's resolve to
rein in inflation prompted investors to seek more insurance
against inflation risks.
* Japan's two-year yield was flat at 1.47%
after an auction for bonds with the same maturity witnessed a
moderately firm outcome.
* "The auction received decent demand because the yield
level was high, and that boosted appetite from banks," said
Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust
Asset Management.
* The market is gauging the impact on JGBs of the massive
earthquake that hit Japan's southern Kumamoto Prefecture earlier
this week.
* Yields could go either way, as the damage could lead Japan
to issue more bonds to finance reconstruction, while supply
chain disruptions could hurt the economy, said Inadome.
* The 30-year yield rose 3 bps to 3.960%.