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JGB yields up after inflation, ECB comments boost European yields

JGB yields up after inflation, ECB comments boost European yields

reuters.com · 09/01/2021 02:32
JGB yields up after inflation, ECB comments boost European yields

- Yields in Japanese government bonds rose on Wednesday after a strong inflation reading and hawkish comments from European Central Bank (ECB) officials boosted European bond yields in the previous session.

The euro zone inflation increased to 3% year-on-year in August, the highest in a decade and far above the European Central Bank's 2% target and a 2.7% forecast by a Reuters poll.nL1N2Q20LW

Robert Holzmann, governor of Austria's central bank, said the bank was in a situation where it could think about reducing buying. Dutch counterpart Klaas Knot said he expected the ECB to start reducing the pace of its emergency bond purchases at next week's meeting, with a view to ending them in March. nS8N2MM039

The 10-year JGB yield JP10YTN=JBTC rose 0.5 basis point to 0.025% while the 20-year JGB yield JP20YTN=JBTC climbed 1 basis point to 0.410%.

The five-year yield JP5YTN=JBTC rose 1 basis point to minus 0.110%, its highest level in almost two months.

Longer-dated bond yields were more stable, with the 30-year and 40-year yield both flat at 0.645% JP30YTN=JBTC and 0.730% JP40YTN=JBTC.

Benchmark 10-year JGB futures 2JGBv1 fell 0.11 point in price to 152.05, with trading volume jumping to 27,675 contracts, its highest level since early July.


(Reporting by Japan Markets Team, Editing by Sherry Jacob-Phillips)

((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))