Japan's 10-year yield falls on risk aversion, debt issuance pledge
TOKYO: Japanese government bond yields fell on Monday as a risk-off mood swept through markets after a selloff in US technology stocks, while Prime Minister Sanae Takaichi’s pledge to control debt issuance also supported sentiment. The benchmark 10-year JGB yield eased 3 basis points to 2.9%. Yields move inversely to bond prices. US Treasuries climbed on Friday, capping a strong week, as a…
Japanese government bond yields declined on Monday due to a risk-averse market and Prime Minister Sanae Takaichi's pledge to regulate debt issuance, according to wire reports. The benchmark 10-year JGB yield slipped 3 basis points to 2.9%, with yields moving inversely to bond prices. US Treasuries experienced a rise on Friday, following a sell-off in the AI sector and heightened demand for safer assets.
Prime Minister Takaichi stated that Japan would "appropriately" control its debt issuance. Market experts noted that the sharp decline in US tech stocks may extend to Japanese AI and chip stocks, contributing to the bond price increase. The Bank of Japan hinted at a shift towards addressing inflation after its September rate hike, with Governor Kazuo Ueda noting that current underlying inflation is near the 2% target.
The 20-year yield fell 1.5 basis points to 3.790%, while the 30-year JGB yield remained unchanged. The 40-year JGB, Japan's longest tenor, had not yet traded. The two-year yield, most sensitive to Bank of Japan policy rates, decreased 1.5 basis points to 1.890%, and the five-year yield held steady.
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