TOKYO, Nov 7 (Reuters) - Japanese government bond yields
ticked higher on Friday, led by longer-dated debt, as new Prime
Minister Sanae Takaichi named advocates of expansive fiscal
policy to posts at the government's top economic panel.
The 30-year JGB yield rose 1.5 basis points
(bps) to 3.1%, while the 20-year yield added 1 bp
to 2.62%.
Yields on the so-called superlong debt are set for their
first weekly increase in four weeks as speculation about
Takaichi's stimulus plans rekindles fiscal worries.
Former Bank of Japan Deputy Governor Masazumi Wakatabe and
Dai-ichi Life Research Institute economist Toshihiro Nagahama -
both advocates of fiscal stimulus - will join the Council of
Economic and Fiscal Policy, the government said on Friday.
The 10-year JGB was flat at 1.68% and the
five-year yield drifted 0.5 bp higher to 1.245%.
Both of those yields had fallen slightly early in the
session, tracking overnight declines in U.S. Treasury yields.
The two-year JGB yield - which is the most
sensitive to monetary policy expectations - remained half a bp
lower at 0.93%.
BOJ Governor Kazuo Ueda adopted a characteristically
cautious tone after the central bank left interest rates steady
last week, with traders now laying about 27% odds on a rate hike
at next month's monetary policy meeting.
"Current JGB market catalysts have narrowed largely to
fiscal developments and overseas interest rates," Mizuho
Securities chief desk strategist Shoki Omori wrote in a note.
"Absent new catalysts before the December MPM, sentiment
remains cautious."