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JGB yields rise on BOJ tightening bets amid yen slide
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JGB yields rise on BOJ tightening bets amid yen slide
Jun 23, 2024 11:11 PM

TOKYO, June 24 (Reuters) - Japanese government bond

yields rose on Monday amid hawkish undertones in a summary of

opinions from this month's Bank of Japan (BOJ) meeting, while

the sliding yen increased pressure on the central bank to

tighten monetary policy.

The 10-year JGB yield rose 2 basis points

(bps) to 0.995% as of 0520 GMT, the highest level since June 12.

Benchmark 10-year JGB futures fell 0.11 yen to

143.52.

The yen dropped as low as 159.94 per dollar for

the first time since April 29, when its plunge to a 34-year

trough of 160.245 provoked Japan's finance ministry to spend

some 9.79 trillion yen ($61.35 billion) to support it.

Finance Minister Shunichi Suzuki and top currency diplomat

Masato Kanda each warned on Monday that officials stand ready to

respond as appropriate to excessive currency swings.

Meanwhile, a summary of the latest BOJ gathering this month

showed that policy makers debated the chance of a near-term

interest rate increase, with one person calling for a hike

without delay.

"The summary of opinions was pretty hawkish: very

constructive on near-term rate hikes, and worried about yen

weakness affecting inflation expectations," said Naka Matsuzawa,

chief macro strategist at Nomura.

"If the Ministry of Finance intervenes in the currency

market, that will put additional presure on the BOJ."

The 20-year JGB yield climbed 2.5 bps to

1.83%, and the 30-year yield jumped 3 bps to

2.175%.

The two-year yield rose 0.5 bp to 0.31%. The

five-year yield was flat at 0.54%.

($1 = 159.7500 yen)

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