Japan's 10-year bond yield hits 30-year high after US Treasury selloff
TOKYO: Japan’s 10-year government bond (JGB) yield jumped to a 30-year high early on Thursday after US Treasury yields surged overnight, while a weaker yen added to concerns about inflationary pressures. Here are a few details: The benchmark 10-year JGB yield rose 8 basis points (bps) to 3.055%, its highest since August 1996. Yields move inversely to bond prices. The 30-year yield rose 5.5 bps to…
Japan's 10-year government bond yield reached a 30-year high early on Thursday following a surge in US Treasury yields overnight, amid concerns of inflationary pressures. The benchmark 10-year JGB yield increased by 8 basis points to 3.055%, marking its highest level since August 1996. The 30-year yield also rose by 5.5 basis points to 4.125%.
Senior strategist Katsutoshi Inadome of Sumitomo Mitsui Trust Asset Management explained that Japanese bond yields are facing upward pressure due to growing inflation concerns stemming from a weaker yen. US Treasury yields jumped overnight, their sharpest daily increase since the market rout last year, after a stronger-than-expected purchasing managers' report fueled fresh inflation fears.
Simultaneously, the US dollar rallied to its highest level in nearly two months as investors anticipated a near-term Federal Reserve rate hike. As a result, the weaker yen raises import costs, leading to higher domestic prices.
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