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Japan's long-dated bond yields rise as PM picks reflationists for key posts
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Japan's long-dated bond yields rise as PM picks reflationists for key posts
Nov 6, 2025 9:48 PM

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."

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