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Ten-year Japanese government bond yields are set to close Monday at the highest level since November 2018, but there is little concern at the Bank of Japan, as recent price action has largely been seen as a reaction to weaker overseas bonds, particularly U.S. Treasuries, MNI understands.

The benchmark 10-year JGB was last at 0.121%, still short of the +20bps level the central bank sees as the upper limit of its fluctuation band either side of 0%. Investors have historically been buyers of JGBs as yields rise but in recent weeks, bargain-hunting has slowed as overseas bond yields rise and speculation grows ahead of the BOJ March review for easy policy.

JGB players are now looking at the BOJ to see whether they step in with an extraordinary bond buying operation, last seen in March 2020, to curb higher bond yield.

Source: Bloomberg

MNI Singapore Bureau | +65 9 632 1991 |
MNI Singapore Bureau | +65 9 632 1991 |

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