Japan’s 10-year government bond yields rise close to BOJ ceiling


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TOKYO — The 10-year Japan government bond (JGB) yield rose back close to the Bank of Japan’s ceiling on Monday, after falling to a more than three-week low in the previous session following the central bank’s decision to keep its ultra-low policy unchanged.

The 10-year government bond yields rose to 0.245%, hovering close to the BOJ’s upper limit of 0.25%.

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U.S. 10-year Treasury yields rose to a 12-year peak on Friday and two-year yields rose to their highest since 2007, as investors fretted that central banks globally will keep tightening monetary policy to tackle soaring inflation.

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The 10-year JGB yields fell to their lowest in more than three weeks on Thursday, after the BOJ affirmed its commitment to ultra-low interest rates, forcing traders to reverse bets on a policy change.

Japan’s financial markets were closed on Friday for a local holiday.

Yields on nine-year bonds maturing in September 2031, rose to as high as 0.292% on Monday, according to Tradeweb Markets, and were last at 0.288%, suggesting a pressure for a sell-off.

The nine-year bonds had become the target of speculators trying to test the BOJ’s resolve to pin down interest rates.

The market so far has not responded to the BOJ offer earlier in the day to buy 550 billion yen ($3.82 billion) of bonds maturing in 5-10 years in its regular bond buying, an increase from 500 billion yen it had originally scheduled. ($1 = 143.8800 yen) (Reporting by Junko Fujita and the Tokyo markets team; Editing by Rashmi Aich)


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