TOKYO, July 9 (Reuters) - The benchmark 10-year Japanese
Government Bond (JGB) yield hit a 30-year high on Thursday, as
rising oil prices rekindled inflation concerns and investors
remained wary of Japan's fiscal health.
Here are a few details:
* The 10-year JGB yield rose 1.5 basis points
(bps) to 2.880%, the highest since September 1996. Yields move
inversely to bond prices.
* The two-year yield, the one most sensitive
to Bank of Japan policy rates, increased 1 bp to 1.44%. The
five-year yield also rose 1 bp to 1.995%.
* Oil prices jumped after U.S. President Donald Trump said
he thought a tentative deal to end the war with Iran was over,
pushing U.S. Treasury yields to a multi-week high.
* The finance ministry is set to auction about 2.5 trillion
yen ($15.38 billion) of 5-year notes later in the day. Higher
yields and signs of demand, reflected in a sharp narrowing in
the negative 5-year swap spread since late last month, should
support the sale, said Lisa Mochizuki, analyst at SMBC Nikko
Securities.
* JGB yields have risen since the government outlined large
spending plans in the policy blueprint last month. The blueprint
called on the Bank of Japan to align monetary policy with growth
efforts, fuelling concerns the government could pressure the
BOJ to keep interest rates low and risk falling behind the curve
as inflationary pressures build.
* The Japanese government is considering revising language
on monetary policy in the economic blueprint, a draft obtained
by Reuters showed.
* "In the recent JGB market, yields have been rising on
fiscal factors, but one of the biggest problems with fiscal
expansion is that it increases inflation risks," said Ataru
Okumura, chief rate strategist at SMBC Nikko Securities, in a
note.
($1 = 162.5500 yen)