TOKYO, July 17 (Reuters) - Japanese government bond (JGB)
yields were mixed on Friday, with the benchmark 10-year yield
rising for a second straight session while the 20-year yield
edged lower as investors weighed inflation risks and signals for
monetary policy.
Here are a few details:
* The 10-year JGB yield added 0.5 basis point
(bp) to 2.715%. Yields move inversely to bond prices.
* The 20-year yield eased 0.5 bp to 3.585%,
on course for a 16-bp slide this week, the steepest weekly drop
in more than a year following surprisingly strong demand at a
sale of the debt on Tuesday.
* U.S. Treasury and euro-zone yields moved modestly higher
overnight, as steady U.S. economic data, along with higher oil
prices tied to Gulf tensions, reinforced expectations for
further central bank tightening.
* "Crude oil prices continue to fluctuate, and inflation
outlooks and interest rate trends remain highly susceptible to
the influence of the energy market," Takayuki Miyajima, senior
economist at Sony Financial Group, said in a note.
* "The market remains mindful of the uncertainty surrounding
fiscal management and monetary policy, and there is persistent
wariness regarding the risk of rising interest rates, including
in the ultra-long-term segment," he added.
* Domestically, investors continued to monitor the Bank of
Japan's tightening stance. A central bank official signalled on
Thursday that further rate hikes could be needed to address
inflation risks, and household surveys showed a sharp rise in
price expectations.
* The 30-year yield sank 1 bp to 3.820%.
* The two-year yield, the one most sensitive
to BOJ policy rates, was unchanged at 1.425%, while the
five-year yield fell 0.5 bp to 1.945%.