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)