TOKYO, Dec 10 (Reuters) - Japanese government bond (JGB)
yields rose on Tuesday, tracking U.S. Treasury yields higher as
investors awaited U.S. inflation data due this week, while
speculation about when the Bank of Japan (BOJ) would raise
interest rates continued.
The 10-year JGB yield was last 2 basis points
(bps) higher at 1.055%, while 10-year JGB futures fell
0.15 points to 143.11 yen.
U.S. Treasury yields climbed on Monday ahead of the closely
watched Consumer Price Index (CPI) data to see whether
stubbornly high price pressures could derail expectations for a
Federal Reserve rate cut next week.
Risk appetite was boosted during U.S. market hours on news
that China will adopt an "appropriately loose" monetary policy
next year, alongside a more proactive fiscal policy to spur
economic growth.
In Japan, investors continued to lean toward a January rate
hike by the BOJ since media reports last week suggested that the
central bank might stand pat this month.
HSBC Chief Asia Economist Frederic Neumann and Economist Jun
Takazawa still expect a rate hike in Japan next week.
"We believe the majority of policy board members have enough
conviction that broad-based wage growth will continue next year
and will choose to move in December, ahead of what could be an
eventful January on the U.S. front as Donald Trump takes
office," they wrote in a research note on Monday.
The BOJ announced on Monday that Deputy Governor Ryozo
Himino will speak on Jan. 14, which some analysts pointed to as
unusual timing for a board member to speak.
The two-year JGB yield, which corresponds more
closely with monetary policy, climbed 1 bp to 0.58%.
The five-year yield was up 1 bp at 0.72%, down
from a session high of 0.74% after an auction for the bond saw
strong demand.
The 20-year JGB yield rose 1.5 bps to 1.855%,
while the 30-year JGB yield ticked up 0.5 bp to
2.255%.