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JGB yields fall to multi-week lows on renewed tariff fears
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JGB yields fall to multi-week lows on renewed tariff fears
Mar 11, 2026 5:19 AM

TOKYO, Feb 24 (Reuters) - Japanese government bond (JGB)

yields fell to multi-week lows on Tuesday, tracking declines in

their U.S. peers overnight, as investors bought safe-haven debt

amid uncertainties over U.S. ​President Donald Trump's tariff

policy.

The 10-year JGB yield ‌fell to as low as 2.65%

to touch its lowest level since December 30, ⁠and was last down

one basis point (bp) to 2.095%.

The 20-year JGB ⁠yield fell 4 bps to 2.870%,

its lowest since ‌December 1.

"There ‌is a tailwind in Japan's bond market from last week

but today investors bought JGBs ​on Trump's losing sight of ‌the

tariff policy," said Katsutoshi Inadome, a senior strategist at

Sumitomo Mitsui Trust Asset Management.

"Uncertainties over the U.S. tariffs ​prompted investors to

buy JGBs," he ​said.

U.S. Treasuries ‌recovered on Monday after a selloff in the

previous session, as investors pondered the implications of the

Supreme Court's Friday decision ⁠to strike down Trump's sweeping

use of emergency powers to ⁠impose tariffs.

Yields on Japan's super-long-dated bonds have been falling

after Prime Minister Sanae Takaichi's landslide election earlier

this month, which gave investors confidence that her government

will not adopt an overly loose fiscal policy, ⁠as ‌some opposition

parties had proposed.

Strong demand from foreign investors ‌for JGBs has also

become a support for bond prices. Foreigners ⁠were dominant

buyers of JGBs across the curve in January, according to data

from the Japan Securities Dealers Association.

They purchased 2.2 trillion yen ($14.19 billion) of

super-long dated bonds, nearing a record set in April, in the

month where yields on those bonds hit a record high on concerns

about worsening fiscal ​health.

Yields move inversely to bond prices.

The 30-year yield fell 1.5 bps to 2.870%.

The two-year yield fell 1 bp to 1.24%. ​The

five-year yield fell 1.5 bps ‌to 1.590%.

($1 = 155.0900 yen)

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