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JGB yields rise as investors focus on 30-year auction, BOJ meeting
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JGB yields rise as investors focus on 30-year auction, BOJ meeting
Jun 8, 2026 7:12 PM

TOKYO, June 9 (Reuters) - Japanese government bond (JGB)

yields rose on Tuesday as investors extended a recent selloff

across most tenors ahead of an expected rate hike by the central

bank.

Here are a few details:

* The benchmark 10-year JGB yield climbed 2.5

basis points (bps) to 2.740%, putting it on track for its

highest close since May 22. Yields move inversely to bond

prices.

* There may be caution in the JGB market ahead of a sale of

30-year bonds on Wednesday, according to Takayuki Miyajima,

senior economist at Sony Financial Group.

* "The recent rise in interest rates is driven more by

inflation concerns and fears that the Bank of Japan is lagging

behind in responding to price pressures than by

supply-and-demand factors," Miyajima said in a note.

* Japan's Economic Revitalisation Minister Minoru Kiuchi

said on Tuesday that he hoped the BOJ would work closely with

the government to durably achieve its 2% inflation target. He

also said the government would keep scrutinising interest-rate

moves and their effects on the economy.

* JGB yields have been under upward pressure as expectations

firmed that the central bank will raise its policy rate by 25

bps to 1% at its June 15-16 meeting.

* Interest rate swaps data through Monday showed a 93%

probability of a hike, according to research firm Tokyo Tanshi.

* The BOJ has shifted to a more hawkish tone as the Iran

war-driven energy shock lifted inflation risks, and Governor

Kazuo Ueda has warned that energy shocks can become persistent

via wages and expectations.

* Moves in Japanese yields also tracked global bond markets,

where U.S. Treasury and euro zone yields have risen in recent

sessions amid persistent inflation pressures and expectations

for central bank tightening.

* The yield on the 20-year JGB advanced 3 bps

to 3.665%, while the 30-year yield gained 3 bps

to 3.965%.

* The two-year yield, the one most sensitive

to BOJ policy rates, was unchanged at 1.415%, while the

five-year yield added 1 bp to 1.950%.

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