TOKYO, July 14 (Reuters) - Yields on benchmark Japanese
government bonds (JGBs) jumped to a seven-week high on Monday,
as concerns grew that an upcoming election would lead to more
fiscal expansion.
Prices for super-long-dated bonds sank last week, driving
yields sharply higher, as prospects dimmed that Prime Minister
Shigeru Ishiba's ruling coalition will retain its majority in
the upper house after a vote on July 20.
The potential defeat could give power to opposition parties
that have pledged in their campaign platforms to cut or abolish
the sales tax. Fiscal concerns and a drop in demand at debt
auctions triggered a surge in super-long yields to record levels
in late May. The Ministry of Finance this month trimmed its
issuance of super-long JGBs in response.
The 10-year JGB yield rose 5 basis points
(bps) to 1.55%, its highest since May 23.
The two-year yield rose 1.5 bps to 0.775%,
while the five-year yield rose 2.5 bps to 1.055%.
Super-long JGB yields were unchanged in early trading.