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JGB yields rise, bonds with super-long maturities pause rally
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JGB yields rise, bonds with super-long maturities pause rally
Jan 29, 2025 11:18 PM

TOKYO, Jan 30 (Reuters) - Japanese government bond (JGB)

yields rose on Thursday, led by a sell-off of bonds with

super-long maturities after their price rally paused.

The 30-year JGB yield rose 3.5 basis points

(bps) to 2.265%, after falling to a more than two-month low of

2.21% in the previous session. The 40-year JGB yield

rose 4 bps to 2.64%.

"Demand for bonds with super-long maturities had been

strong, supported by the firm outcome of recent auctions," said

Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust

Asset Management.

"The Ministry of Finance will reduce sales of super-long

bonds from April, which also underpinned demand for such

longer-dated bonds. But that momentum has faded."

The 20-year JGB yield rose 2.5 bps to 1.9%.

The 10-year JGB yield rose 2 bps to 1.21%.

Bank of Japan Deputy Governor Ryozo Himino spoke at a

seminar from 0610 GMT on Thursday.

His speech, scheduled a few days after the BOJ raised its

policy rate, was less focused compared with his previous

appearance in mid-January.

"There has been no miscommunication between the BOJ and the

markets about the central bank's future policy, as the BOJ has

said what it could say after its policy meeting last week,"

Inadome said.

Last Friday, the BOJ raised interest rates to 0.5%, their

highest since the 2008 global financial crisis, and revised up

its inflation forecasts.

The five-year yield rose 1.5 bps to 0.88%.

The two-year JGB yield rose 2 bps to 0.715%

after Himino spoke. The other yields have not moved as of 0700

GMT.

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