TOKYO, June 30 (Reuters) - Japanese government bond (JGB)
yields rose on Tuesday ahead of a sale of two-year notes, as
inflation concerns and a soft yen weighed on sentiment.
Here are a few details:
-- The benchmark 10-year JGB yield rose 2
basis points (bps) to 2.650%. The 20-year yield
climbed 3 bps to 3.580%. Yields move inversely to
bond prices.
-- U.S. Treasury yields edged higher overnight as crude
prices advanced amid Middle East tensions and ahead of key U.S.
jobs data. The yen fell to 162-per-dollar level on Tuesday, the
weakest point since 1986.
-- "Selling is expected to dominate Japanese bond market on
Tuesday," Hiroshi Watanabe, a senior economist at Sony Financial
Group, said in a note. "With the dollar-yen exchange rate
approaching 162, a level not seen in about 40 years, concerns
are likely to grow over the risk of inflation exceeding
expectations due to the Bank of Japan's delay in raising
interest rates further."
-- The Ministry of Finance will sell about 2.8 trillion yen
($17.26 billion) in two-year notes later in the session.
-- Inflation concerns persisted in Japan, driven by higher
energy costs and upstream price pressures, while expectations
for further BOJ tightening remained elevated following its June
rate hike.
-- Prime Minister Sanae Takaichi's administration appointed
Ayano Sato, seen as an advocate of loose monetary policy, as a
central bank board member on Tuesday.
-- The two-year yield, the one most sensitive
to Bank of Japan policy rates, held steady at 1.395%, while the
five-year yield rose 1 bp to 1.880%.
($1 = 162.2300 yen)