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JGB yields fall as investors scoop up debt at bargain

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TOKYO — Japanese government bond yields fell on Tuesday, as investors scooped up debt at a bargain following a sell-off driven by U.S. peers.

The 20-year JGB yield fell 4 basis points to 0.885%, after hitting its highest since January 2016 at the end of last week. The 30-year JGB yield fell 4.5 basis points to 1.235%.

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“Japan’s yields have been tracking U.S. yields higher, but they have risen close to their peak. Investors bought back the debt at a bargain today,” said Takayuki Miyajima, a senior economist at Sony Financial Group.

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“Japanese yields are unlikely to rise any further as speculation that the Bank of Japan would change its ultra-loose monetary policy have also faded recently.”

U.S. Treasury yields have risen recently as Federal Reserve officials stressed the need for more rate hikes to tame soaring inflation, sending interest rate-sensitive two-year Treasury yields to a more than 14-year high last week.

The 10-year JGB yield fell 0.5 basis point to 0.240%.

The five-year yield fell 1.5 basis points to 0.035%.

The 40-year JGBs did not trade and the yield stayed at 1.445%.

The two-year JGB yield rose 0.5 basis point to -0.075%.

Benchmark 10-year JGB futures rose 0.3 point to 149.01, with a trading volume of 9,622 lots.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)

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