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JGB yields rise after surge in U.S. 10-year Treasury yields

· 02/08/2021 01:29
JGB yields rise after surge in U.S. 10-year Treasury yields

- Japanese government bond yields rose on Monday, after U.S. 10-year Treasury yields soared to their highest level in nearly a year as softer-than-expected U.S. jobs data strengthened expectations of more stimulus spending from Washington.

The auction for 10-year, inflation-linked Japanese bonds on Monday received slightly lower demand from last time, failing to boost the market. The tenders were 3.07 times oversubscribed, compared with 3.31 times in November.

The 10-year JGB yield JP10YTN=JBTC rose 0.5 basis point to 0.060%, while the 20-year JGB yield JP20YTN=JBTC rose 0.5 basis point to 0.450%.

The 30-year JGB yield JP30YTN=JBTC jumped 1.5 basis points to 0.665%.

The two-year JGB yield JP2YTN=JBTC rose 0.5 basis point to minus 0.130% and the five-year yield JP5YTN=JBTC rose one basis point to minus 0.100%.

The 40-year JGB yield JP40YTN=JBTC rose one basis point to 0.705%.

Benchmark 10-year JGB futures 2JGBv1 fell 0.14 point to 151.5, with a trading volume of 20,914 lots.

U.S. bonds extended losses further in Asia on Monday, with the benchmark 10-year yields US10YT=RR rising as much as 1.189%, its highest since March.


(Reporting by Tokyo markets team; Editing by Devika Syamnath)

((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters Messaging:junko.fujita.reuters.com@reuters.net;))